May 16, 2017
With spreads tight in investment-grade and high-yield corporate bonds, loans, structured credit, and Agency mortgage-backed securities, we expect an uptick in volatility this summer. The Federal Reserve is set to continue to raise interest rates—and at a faster pace than that which is priced in the market—which means positioning for a flattening yield curve will remain a major theme in our portfolios. Our view on the global macroeconomic environment is positive, which should support strong credit fundamentals for several years. We are also focused on the legislative complexities of passing President Trump’s pro-growth agenda. Failure to put his plans into effect in a timely manner may cause markets to realize that the Trump rally is long on promise and short on delivery.
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FEATURED PERSPECTIVES
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VIDEOS & PODCASTS
Scott Minerd, Chairman of Investments and Guggenheim Partners Global CIO, joins Bloomberg TV on Fed Day to discuss the Federal Reserve’s largest rate hike since 1994.
Managing Director Justin Takata discusses the technical and fundamental drivers of value in investment grade corporates, and U.S. Economist Matt Bush addresses recession timing and the possible progression of policy.
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