Company: PPT
Filing Date: 2025-09-26
Form Type: N-CSR
Source: 0001133228-25-010195
Chunk: 5

Company: PUTNAM PREMIER INCOME TRUST
Filing Date: 2025-09-26
Form: N-CSR
Chunk 5
---
5

volatility

from

tariff

concerns.

Improving

fiscal

clarity

and

delayed

tariff

implementation

helped

spreads

recover.

Investment-grade

credit

fundamentals

have

remained

supportive

and

continue

to

offer

relatively

attractive

yield.

Mortgage

credit

exposures

were

also

significant

contributors

to

performance,

mainly

due

to

CMBS

and

RMBS.

CRE

showed

signs

of

optimism,

including

payoff

and

refinancing

rates

that

continued

to

surprise

to

the

upside

amongst

all

property

types,

and

the

potential

for

higher

economic

growth

and

bank

deregulation

under

the

new

administration.

The

residential

mortgage-backed

securities

market

continued

to

benefit

as

U.S.

homeowner

balance

sheets

remained

well

positioned,

supported

by

locked

in

home

price

appreciation,

lower

household

leverage,

strong

underwriting

standards,

and

a

healthy

labor

market.

Prepayment

strategies,

particularly

agency

interest-only

(IO)

securities,

contributed

positively.

However,

tactical

positioning

in

agency

mortgages

partially

offset

gains.

Interest

rate

and

yield

curve

strategies

also

added

value,

as

the

Fund’s

positive

structural

duration

benefited

from

declining

Treasury

yields.

EM

exposures

were

additive

late

in

the

period,

as

easing

tariff

concerns

and

resilient

economic

data

drove

a

rally

in

EM

hard-currency

sovereign

bond

indexes.

#### Q.

#### What

#### were

#### the

#### leading

#### detractors

#### from

#### performance?

#### A.
Currency

risk

strategies

modestly

detracted

from

Fund

performance

over

the

period.

This

strategy

employs

a

hedge

of

safe-haven

currencies

that