With CLO debt at post-crisis tights, we prefer less credit risk and spread duration.
The likelihood that rates will rise means that prepayment risk has decreased dramatically.
Tighter loan spreads cause some concern, but the gradual increase in Libor keeps loans looking attractive.
Remain vigilant on property valuations.
The flow of funds from foreign sources into U.S. real estate will be important in 2017.
We are constructive on high yield but keeping an eye out for signs of an over-extended rally.
Yields look attractive compared to six months ago, but spreads have discounted the potential for pro-growth fiscal policies.
Policy changes, including tax reform and deregulation, create opportunity and uncertainty.
Tight spreads necessitate caution, but improving credit fundamentals beget opportunities.
The recent rise in Treasury yields reflect a very optimistic “if” scenario based on the incoming administration’s anticipated policies.
Follow Scott Minerd
You are now leaving this website.Guggenheim assumes no responsibility of the content or its accuracy.
Your browser does not support iframes.
© 2017 Guggenheim Partners, LLC. All rights reserved. Guggenheim, Guggenheim Partners and Innovative Solutions. Enduring Values. are registered trademarks of Guggenheim Capital, LLC.