January 18, 2019
Here are the key takeaways from our latest High-Yield and Bank Loan Outlook report:
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Investing involves risk, including the possible loss of principal. Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing their values to decline. High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate.
Rational immigration policy, not rate cuts, is the way to avoid recession.
High-yield corporate bond spreads and bank loan discount margins typically widen when the Fed is lowering interest rates.
The Federal Reserve’s policy pivot has supported a rally in most credit sectors, but investors should worry about late cycle excesses.
Portfolio Manager Adam Bloch and Macroeconomic and Investment Research Group Director Matt Bush share insights from the first quarter 2019 Fixed-Income Outlook.
Anne Walsh, Chief Investment Officer for Fixed Income, shares insights on the fixed-income market and explains the Guggenheim approach to solving the Core Conundrum.
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