The unconstrained Multi Credit strategy is designed to utilize the full scope of yield and return opportunities in the fixed income markets and capitalize on Guggenheim’s extensive resources.
Extensive Research Capabilities
We believe that capturing attractive yields, while remaining focused on the preservation of capital, is the surest path to superior investment results. Our large fixed income team uses a fundamental credit-intensive investment process that incorporates our knowledge of issuers, structures and industries. Many of the securities we research are not included in traditional indices.
Active management is a key element of our strategy. Our unconstrained 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.
Low Correlation to Other Managers
Our investment approach has produced attractive returns that have had low correlation to traditional fixed income markets and other investment managers, making our strategy an excellent complement within a multi-manager framework.
Customizing portfolios to meet the complex challenges of our clients is a core competency of Guggenheim. We believe our Multi Credit strategy is a compelling solution in all environments and can help institutional investors successfully navigate the constantly evolving fixed income markets.