Active vs. Passive, ESG Investing, and a Fixed Income Outlook with Mike Lillard, Head of PGIM Fixed Income and CIO

On the inaugural episode of 'All the Credit,' Host and Senior Portfolio Manager Mike Collins welcomes Mike Lillard, Head of PGIM Fixed Income and Chief Investment Officer. In this wide-ranging interview, the two discuss the debate over active vs. passive investing, how PGIM Fixed Income thinks about ESG, global growth and macro views in 2020, and the firm's overall view of the top trends and opportunities in the fixed income markets.

Key Takeaways:

[1:40] How did Mike L. first get started in investment management?

[6:35] Mike L. is also a member of the Treasury Borrowing Advisory Committee. What are some of his responsibilities as a member?

[10:10] The two weigh in on the active vs. passive investment management debate.

[13:45] How does PGIM Fixed Income navigate through Environmental Social Governmental (ESG) issues when making investments for clients?

[17:45] How does PGIM Fixed Income rank and determine if an issuer is ESG friendly?

[21:10] Where does Mike L. see global growth headed in 2020?

[24:40] We have low inflation on a global scale, what does that mean for interest rates?

[27:30] Companies are struggling to see where the growth will come from long-term and therefore are more cautious about hiring talent and leveraging debt.

[27:55] Are we in a bubble?

[31:35] Mike L. shares his thoughts on some of the long-term risks to be aware of, such as the budget deficit in the United States.

[32:45] What industries/sectors should investors be focused on in the fixed income markets?

Mentioned in This Episode:

PGIMFixedIncome.com

Tweetables:

"Thinking about the amount of risk you want to take vs. an index is more important than this active/passive label, which is pretty arbitrary."

"A lot of countries added significantly to the debt following the 2008 financial crisis and nobody has paid it back, no one has paid down that GDP."