We have more than $33.4 billion as of 12/31/2022 across all client accounts and funds in asset-backed securities (ABS), non-agency residential mortgage-backed (MBS), and commercial mortgage-backed securities (CMBS).
We believe that given the size of the structured credit market, there are good investment opportunities that can be revealed by those managers who invest in a credit-intensive research process. Unlike other asset managers, the composition of the portfolio’s benchmark is largely irrelevant to the portfolio’s composition. Rather, our investment process is designed to give higher allocation to those sectors with attractive risk/return potential through our careful selection of issues which have strong fundamentals within each sector.
Research Driven Investment Process
We incorporate our research team’s macroeconomic outlook with in-depth security-level analysis across all market sectors, especially in non-index-eligible securities. By leveraging our deep issuer relationships and the unique expertise, research capabilities, and structural knowledge of our investment professionals, we seek to generate returns from new issues and uncover value in overlooked secondary market securities such as middle market Collateralized Loan Obligations (CLOs), Commercial Real Estate and Asset-Backed Collateralized Debt Obligations (CDOs).
Depth of Resources
Our structured credit team utilizes other core areas of Guggenheim to research and understand collateral and sponsor health. In addition, we have a dedicated internal legal team that takes an active role in structuring transactions, waterfall and performance trigger analysis, and reviewing indentures. We additionally have investment professionals located throughout the United States and Europe to increase the scope of investable opportunities.
Active Portfolio Management
Through Guggenheim’s active management approach we have designed portfolios with the objective to outperform over market cycles. Our team focuses on establishing a deep understanding of securities to prevent impulsive decision making and create opportunities to capture liquidity premium. We utilize a combination of qualitative and quantitative techniques, in addition to top-down structured finance sector allocations, bottom-up security selection, and security origination to construct highly diversified portfolios. We believe our strategy can provide an optimal way to maximize client returns while controlling for volatility and risk.