May 17, 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.
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.
Beijing is preparing for a protracted standoff as the U.S.-China trade war ramps up.
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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