The Multi Credit strategy targets higher allocation to sub-investment grade credits than the Core/Core Plus strategies.
Extensive Research Capabilities
Our Multi Credit strategy aims to target the higher yielding sectors of the market through unlocking value in complex and underfollowed transactions, while performing rigorous credit risk analysis in an attempt to mitigate risk.
Active management is a key element of our strategy. Our Multi Credit portfolios are focused in sectors and securities with the most attractive absolute and relative value. We invest across the full spectrum of the fixed income market, including asset-backed securities, investment grade and high yield corporates, bank loans, residential mortgage-backed securities, commercial mortgage-backed securities, and municipals. The strategy’s asset allocation is constantly monitored and tactically adjusted to take advantage of changing macroeconomic conditions.
Solution for Low Yield Environment
Currently, yields for traditional fixed income securities are at historically low levels. Against this backdrop, many investors have simply lowered credit quality and extended duration to generate yield. While these investment shortcuts may produce short-term gains, they leave investors exposed to downside risk that can erode long-term returns.
With our expertise and extensive research capabilities, we seek to uncover value in under-researched market segments and help investors meet their yield and return objectives without assuming excessive credit or duration risk.
Our investment approach has produced attractive returns that have had low correlation to traditional fixed income markets, making our strategy an excellent complement within a multi-manager framework.
Given the diversity of the fixed income sectors and Guggenheim’s expertise with various types of institutional investors, customizing portfolios to meet the complex challenges of our clients is a core competency.