Value in new-issue aircraft lease transactions and CLOs backed by loans to middle market companies.
Demand remains strong as Agency MBS is one of few positive-yielding, high-quality asset classes.
Moving slightly down in quality as loans deliver steady performance.
Market volatility in the first half of 2016 has given way to a sharp rally in CMBS spreads and resurgence in CMBS issuance.
Despite positive fundamentals, the second quarter saw a significant decrease in lender appetite.
The energy sector currently offers the best potential total return upside in the high-yield space.
Relatively high yields and abundant supply entice global fixed-income investors.
Talk of tax reform will likely create uncertainty in the otherwise-robust municipal bond market.
Constructive themes of improving fundamentals and limited supply remain firmly in place.
Investors from outside of the United States seeking higher relative yields will likely continue to support Treasurys as global rates languish.
Central bank policies implemented in the near-term may seem extreme today, but they will likely soon become policy orthodoxy.
Our third quarter 2016 report, details our current fixed-income strategy, economic outlook and where we see relative value.
Despite the selloff following Brexit, high-yield bonds and bank loans still turned in impressive quarterly returns, but recovery rates bear watching.
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