GHY
PGIM Global Short Duration High Yield Fund, Inc. is a closed ended fixed income mutual fund launched and managed by PGIM Investments LLC. The fund is co-managed by PGIM Fixed Income. It invests in fix...
A Junk Bond Fund Built For This Environment, But There Are A Lot Of Risks Within
The PGIM Global High Yield Fund (GHY) is a global high-yield bond fund that includes emerging markets debt. The fund uses a moderate amount of leverage (around 15%), which is seen as a positive. The inclusion of emerging markets is also viewed favorably, especially with a falling dollar. However, the fund's broad diversification could potentially hinder performance if some markets underperform. The expense ratio is high, which is a concern.
A Solid 10% Yielding Global High Yield Bond Fund
The PGIM Global High Yield Fund (GHY) offers a high yield by investing in below-investment-grade fixed income instruments globally, including emerging markets. The fund uses leverage to enhance returns, which increases both potential yield and risk. While historical performance has been good, the current environment of contracting liquidity and recessionary trends makes high-yield bonds riskier than in the past. The fund's expense ratio is on the higher side, and the cost of leverage is increasing with rising interest rates, posing a challenge to future returns.