Guggenheim First Quarter 2021 High-Yield and Bank Loan Outlook: A Ripe Environment for Strong Credit Performance
February 25, 2021 at 18:14 PM EST
NEW YORK, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today provided its First Quarter 2021 High-Yield and Bank Loan Outlook. Titled “A Ripe Environment for Strong Credit Performance,” the report explains why we expect a decline in default volumes, an improvement in rating migration, and a recovery in corporate earnings. These fundamental improvements, supported by another round of fiscal relief and the rollout of a successful vaccine distribution, will facilitate a reduction in leverage ratios and spreads remaining near current levels.
Among the highlights in the 16-page report:
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About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $246 billion1 in total 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 300+ 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 opportunities and attractive long-term results.
1. Guggenheim Investments assets under management as of 12.31.2020 and include leverage of $13.7bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.
Investing involves risk, including the possible loss of principal. The potential impacts of the COVID-19 outbreak are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing their value to decline. High-yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility.
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