/institutional/perspectives/sector-views/high-yield-and-bank-loan-outlook-january-2016

High-Yield and Bank Loan Outlook - January 2016

Today’s markets test the strongest convictions, but we believe it is a passing storm.

January 15, 2016    |    By Guggenheim Partners

Report Highlights

  • The Credit Suisse High-Yield Bond and Leveraged Loan Indices posted losses of 2.6 percent and 2.0 percent in Q4 2015, respectively, bringing annual returns to negative 4.9 percent and negative 0.38 percent, respectively—their worst performance since 2008.
  • As we expected, many of the challenges seen in 2015 originated in commodity sensitive sectors. Investors were spooked by steep declines in energy and metals prices, and a weakening global economic outlook, causing volatility to spill over into other sectors.
  • Outside of energy and metals, we continue to believe that many sectors offer attractive valuations. Our analysis indicates that a positive story remains intact for a large number of issuers.
 
Important Notices and Disclosures

This article 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 article 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. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Guggenheim Partners, LLC. ©2016, Guggenheim Partners. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

 


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