Guggenheim 4Q Fixed-Income Outlook: Fed Policy and Election Outcome Signal Yield Curve Shift

NEW YORK, Dec. 15, 2016 -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today provided its Fourth Quarter 2016 Fixed-Income Outlook. Among the highlights in the 32-page report:

• Since the volatile first quarter, spreads across the fixed-income market have tightened as risk assets have continued to perform well.
   
• Our view is that the Fed will raise rates three or possibly four more times in 2017.
  
  
• We continue to see strong demand from foreign investors hungry for yield supporting the investment-grade market.
   
• Spreads on collateralized loan obligations have tightened significantly, particularly as investors have been allocating more to floating rate assets.
   
• Rising pension liabilities remain a concern, but strong technicals support the municipal market.
  

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 $10.7bn 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.

Investing involves risk. In general, the value of fixed-income securities falls when interest rates rise. High-yield securities present more liquidity and credit risk than investment grade bonds and may be subject to greater volatility. Investments in bank loans securities involve special types of risks, including credit risk, interest rate risk, liquidity risk and prepayment risk.

This information herein is distributed for informational purposes only and should not be considered as investing advice or a recommendation of any particular security, strategy or investment product. This material contains opinions of the author but not necessarily those of Guggenheim Partners or its subsidiaries. The author's opinions are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. ©2016, Guggenheim Partners, LLC.  No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Guggenheim Partners, LLC.

Media Contact 
Ivy McLemore
Guggenheim Partners 
212.518.9859
[email protected]