Guggenheim 3Q Fixed-Income Outlook: Finding Relative Value with One Eye on Global Banks

NEW YORK, Aug. 18, 2016 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today provided its Third Quarter 2016 Fixed-Income Outlook. The 32-page report provides investors with insights from Guggenheim’s 160+ member fixed-income investment team which manages $150 billion in assets across a variety of sectors.

“Central banks around the world are being called on to take extraordinary measures to deliver economic growth and financial stability, and in the process have crossed into uncharted territory,’ said Scott Minerd, Guggenheim’s Global CIO. “Whichever way policy tips, the outcome will be beneficial for U.S. credit markets.

“If the European Central Bank and the Bank of Japan believe economic conditions do not merit more dramatic policy, risk assets will do relatively well because the U.S. economy is in good shape. If the situation worsens—as I believe it will—Europe and Japan will likely lower rates further into negative territory, extend quantitative easing, or take even more extreme policy actions, such as ‘helicopter money.’ In this case, foreign capital flooding into the United States in search of higher relative yields will act like another round of quantitative easing, driving yields down and supporting risk assets.”

Among the report’s highlights:

  • Next Steps for the Federal Reserve: Our Macroeconomic Research team expects solid near-term growth in U.S. underpinned by fundamental strength in the consumer sector, but the Fed likely will remain on hold until December 2016 at the earliest.
  • Sifting Through Sectors: Energy and basic materials present the most total return upside for skilled credit pickers. We see value in these sectors in particular, and also continue to find attractive opportunities in technology and media.
  • Finding Relative Value: After a volatile first quarter, improving conditions helped support successful new-issue pricing across a range of esoteric asset-backed securities, such as whole business cash flows and aircraft leases, among others. We continue to find value in new-issue aircraft lease transactions, and in collateralized loan obligations backed by loans to middle market companies.

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About Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $202 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 06.30.2016 and includes $11.4bn 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.

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.

Media Contact Ivy McLemore Guggenheim Partners 212.518.9859 – office

Source: Guggenheim Investments