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PGIM Global High Yield Fund holds steady with 10.7% yield but faces risks from rate hikes and leverage.

Market News
29 Jul 2026
Seeking Alpha
View Source
Neutral
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The PGIM Global High Yield Fund (GHY) remains a hold due to consistent payouts but limited net asset value growth and few catalysts for near-term gains. It trades at an 8.07% discount to NAV, reflecting challenges in asset growth and reliance on net realized gains for distributions. The fund offers a 10.7% yield but covers only 71% of distributions with net investment income, raising concerns about sustainability if interest rates rise. GHY also faces risks from high leverage and significant exposure to below-investment-grade debt, making it vulnerable to potential interest rate hikes.

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