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.
The Fed has increasingly unorthodox policy options if the economy remains mired in a protracted downturn.
While the U.S. speculative-grade default rate could reach 15 percent in this cycle, the market is offering better entry points than seen in years.
The support to corporate America during this economic shutdown risks the creation of a new moral obligation for the U.S. government.
Brian Smedley, Head of the Macroeconomic and Investment Research Group, and Portfolio Manager Adam Bloch share insights from the fourth 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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