(ISD) PGIM High Yield Bond Fund - Ratings and Ratios

The PGIM High Yield Bond Fund Inc (NYSE:ISD) is a high-yield bond fund originating from the USA, investing in a portfolio of high-yield, fixed-income securities. As a closed-end fund, it aims to provide investors with a regular income stream and potentially lower volatility compared to equity investments.

To evaluate the funds performance, key metrics to consider include the distribution yield, which indicates the funds ability to generate income for shareholders. Additionally, the funds expense ratio, which is a measure of its operational costs, is crucial in determining its overall efficiency. A lower expense ratio generally translates to higher net returns for investors.

Further analysis involves examining the funds credit quality, sector allocation, and duration to understand its risk profile. The credit quality of the funds holdings is essential, as high-yield bonds are typically associated with higher credit risk. The sector allocation and duration provide insights into the funds sensitivity to interest rate changes and its exposure to specific industries.

To gauge the funds relative performance, comparing its yield to that of its benchmark, such as the ICE BofA US High Yield Index, is essential. A higher yield relative to the benchmark may indicate a more attractive income generation opportunity, but it may also signify higher risk. Other key performance indicators (KPIs) include the funds Sharpe ratio, which measures risk-adjusted returns, and its discount/premium to net asset value (NAV), which can indicate market sentiment towards the fund.