Sector Reports

High-Yield and Bank Loan Outlook – April 2016

By Scott Minerd |  April 13, 2016
While spreads have since narrowed, we are still finding bargains in high-yield bonds and bank loans.

High-Yield Corporate Bonds: Compelling Relative Value Despite Volatility

By Guggenheim Investments |  March 17, 2016
After their first annual loss since 2009, our research suggests select high-yield bonds look attractive again on a risk-adjusted basis.

Rates: Risk, But Not Much Reward

By Guggenheim Investments |  March 17, 2016
With higher yields and shorter durations, Agency bonds represent better value than U.S. Treasurys in 2016.

Municipals Strong Fundamentals Despite Headline Risk

By Guggenheim Investments |  March 17, 2016
With the exception of well-known problem credits, such as Puerto Rico and Chicago, fundamentals in the municipal bond market remain strong.

Commercial Real Estate Debt: 2016 Could Be a Supply Story

By Guggenheim Investments |  March 17, 2016
Investor demand for commercial mortgage loans was strong in 2015, but it remains to be seen whether the trend will continue in 2016.

Commercial Mortgage-Backed Securities: Time to Focus on Neglected Credits

By Guggenheim Investments |  March 17, 2016
A technical pricing dislocation in subordinated CMBS and non-traditional CRE offers a compelling entry point for commercial mortgage investors.

Bank Loans: Sympathetic Widening Yields Opportunity

By Guggenheim Investments |  March 17, 2016
Bank loan valuations weakened in sympathy with the high-yield bond market, but we believe investors are being well-compensated for credit risk.

Asset-Backed Securities and CLOs: Yield Premiums in Select ABS

By Guggenheim Investments |  March 17, 2016
Recent spread widening across several areas of the ABS market, particularly in post-crisis mezzanine CLOs, creates a compelling entry point.

Investment-Grade Corporate Credit: Higher Yields for Strong Convictions

By Guggenheim Investments |  March 17, 2016
Widening spreads and higher yields in investment-grade corporates presents opportunities to add selectively to positions where our credit conviction remains unchanged.

High-Yield and Bank Loan Outlook - January 2016

By Scott Minerd |  January 15, 2016
We continue to expect that defaults will remain largely contained to commodity-related sectors despite the market’s dimming outlook for risk assets. While we keep a vigilant eye on the fundamental trends that underpin our credit views, it is important to remember during market conditions such as these that we are long-term investors, not traders. These are markets in which the strongest convictions are tested, but cooler heads prevail in the end.

High-Yield and Bank Loan Outlook - October 2015

By Scott Minerd |  October 14, 2015
While volatility in credit markets may not yet be over, we believe now is the time to look for high-yield and bank loan investment opportunities.

High Yield and Bank Loan Outlook - July 2015

By Scott Minerd |  July 16, 2015
The energy sector represents an attractive opportunity to invest in high yielding securities, but investors must consider the sector specific first- and second-order effects of depressed energy prices.

High Yield and Bank Loan Outlook - April 2015

By Scott Minerd |  April 15, 2015
How high yield bonds and bank loans can help investors position for the Federal Reserve’s upcoming rate tightening cycle.

High Yield and Bank Loan Outlook - January 2015

By Scott Minerd |  January 08, 2015
While the U.S. economy remains strong, equity and credit markets are becoming increasingly susceptible to certain macro-driven risks, such as the decline in oil prices. Plunging oil prices have dimmed the outlook for the energy sector and have caused spread widening across investment-grade and high-yield U.S. fixed-income assets. While we believe risk of defaults in energy is limited in the near term, now is the time to monitor significant exposures that may cause underperformance in potentially worst-case scenarios.

High Yield and Bank Loan Outlook - October 2014

By Scott Minerd |  October 08, 2014
High-yield investors may limit near-term volatility risk while capturing strong returns by increasing allocations to middle-market debt.

High Yield and Bank Loan Outlook - July 2014

By Scott Minerd |  July 08, 2014
Certain areas of leveraged credit are overvalued, particularly CCC-rated bonds and bank loans, but often some of the best profits come in the final phase of a cycle. With valuations frothy, we believe now is the time to start moving up in credit quality. Our analysis finds value in BB-rated and B-rated bonds and we are most positive on BB-rated and B-rated bank loans, where discount margins still trade wide of ex-recession averages.

Municipal Market Outlook - May 2014

By Scott Minerd |  May 08, 2014
Municipal bonds posted strong returns in the first quarter of 2014 and look set for a strong year amid an improving fiscal and economic situation. Tight supply will be the key factor which could drive prices higher in 2014. While troubled issuers such as Puerto Rico, Illinois and Detroit will continue to garner negative attention, investors may still find value in this supply-constrained environment.

Watch Video

High Yield and Bank Loan Outlook - April 2014

By Scott Minerd |  April 10, 2014
High-yield bonds are entering a realm of relative overvaluation but spread compression can nevertheless continue. Low high-yield default rates and continued demand from both individual and institutional investors should drive spreads tighter until default rates rise – something we do not expect will happen until 2016 or beyond.

High Yield and Bank Loan Outlook - January 2014

By Scott Minerd |  January 08, 2014
Improving U.S. macroeconomic conditions should spur additional investor demand for high-yield bonds and bank loans, particularly with defaults exceptionally low. Still, investors should monitor trends pointing to an erosion of safety in leveraged credit.
Subscribe to Perspectives
Sign up for email alerts and you will be notified via email as soon as the selected publications have been posted.



Subscribe to Perspectives

2016 Guggenheim Investments. All Rights Reserved.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

Guggenheim Investments Guggenheim Investments

Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $198 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, wealth managers, and high-net-worth investors.

Financial ProfessionalsInstitutional Investors Individual Investors

Please register to access

First Name*:

Last Name*:



*Required fields