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NEW YORK, Jan. 17, 2017 -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today provided its First Quarter 2017 High-Yield and Bank Loan Outlook. Among the highlights in the 14-page report:
- Even though spreads are tight, now is not the time to sell credit. But another year of double-digit returns in credit is unlikely.
- Declining default rates and improving macroeconomic conditions should sustain positive returns in leveraged credit, but tight spreads and high bond prices make the sector vulnerable to volatility.
- We expect that the high-yield default rate will fall to 4 percent in 2017.
- Where the focus in recent years had been on the Fed’s inability to achieve its dual mandate and on the risks of removing accommodation too quickly, it is now centered on a likely acceleration of the pace of tightening and the potential for the Fed to overshoot its goals.
- Although the Fed has indicated three rate hikes in 2017, we believe there is a risk of four.
For more information, please visit http://www.guggenheiminvestments.com.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $204 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, consultants, wealth managers, and high-net-worth investors. Our 275+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.
1Guggenheim Investments total asset figure is as of 09.30.2016 and includes $11.7bn of leverage for assets under management and $0.5bn for assets for which Guggenheim provides administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, Transparent Value Advisors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Media Contact Ivy McLemore Guggenheim Partners 212.518.9859 [email protected]
