Company: PPT
Filing Date: 2025-09-26
Form Type: N-CSR
Source: 0001133228-25-010195
Chunk: 2

Company: PUTNAM PREMIER INCOME TRUST
Filing Date: 2025-09-26
Form: N-CSR
Chunk 2
---

shifting

sentiment

around

U.S.

trade

policy

and

fiscal

dynamics.

In

late

2024,

attention

centered

on

the

presidential

election,

leading

to

increased

volatility

and

spread

widening

in

corporate

credit.

Following

the

election,

markets

shifted

to

a

risk-on

tone,

volatility

declined,

and

investment-grade

corporate

spreads

returned

to

20-year

lows.

In

early

2025,

sentiment

reversed

as

investors

assessed

the

new

administration’s

actions.

Spreads

widened,

particularly

in

corporate

credit,

pressuring

fixed

income

returns.

In

early

April,

trade

policy

dominated

headlines

as

the

President

announced

broad

tariff

increases,

impacting

major

trading

partners.

This

triggered

a

global

selloff

in

equities

and

spread

products.

However,

most

tariffs

were

paused

for

90

days

to

allow

for

negotiations,

prompting

a

market

rebound

and

a

strong

second

quarter

finish.

#### Q.

#### How

#### did

#### we

#### respond

#### to

#### these

#### changing

#### market

#### conditions?

#### A.
Leading

into

the

market

turmoil,

we

maintained

a

low-

risk

posture,

as

we

believed

risk

asset

valuations

were

tight

given

the

market

environment.

Given

spread

widening,

relative

valuations

improved

and

offered

opportunities

to

modestly

increase

credit

risk.

Within

corporate

credit,

we

sought

idiosyncratic

opportunities,

while

in

emerging

markets

(EM)

we

remained

focused

on

relative

value

opportunities

within

higher

quality,

high-yield

names.

Within

residential

mortgage-backed

securities

(RMBS),

we

favored

opportunities

near

the

top

of

the

capital

stack,

such

as