Q4 2017 Fixed-Income Outlook

November 13, 2017

Steve Brown and Maria Giraldo provide additional perspective on our 4Q 2017 Fixed-Income Outlook.

Report Summary

Virtually every piece of data you could look at is associated with a solid economy, and it is about to get stronger from the surge in post-hurricane rebuilding, seasonal tailwinds, and possible tax cuts. At the same time, the Fed is ratcheting rates higher and normalizing its balance sheet, spreads in most fixed-income sectors are moving to historical tights, and below investment-grade yields are likely to breach historical lows. Investors today are simply not being compensated for the risks they are taking. The question now is how to generate yield without taking on undue interest-rate or credit risk. The challenge is to avoid chasing short-term gains and maintain the discipline required for long-term investing success.

Important Notices and Disclosures

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This material contains opinions of the author or speaker, but not necessarily those of Guggenheim Partners or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. Past performance is not indicative of future results.

Fixed-Income Outlook: The Best Offense Is a Good Defense

Fixed-Income Outlook: Walking the Risk Tightrope

FEATURED PERSPECTIVES

April 12, 2018

Not Too Soon to Think About Defaults and Recovery Rates

Benign conditions support near term value in credit, but default rates will rise as the Fed tightens further and corporate debt levels continue to grow.