{"id":33417,"date":"2023-07-09T19:58:14","date_gmt":"2023-07-09T23:58:14","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/guggenheim-sees-great-opportunities-despite-a-potential-recession-heres-the-playbook-it-recommends\/"},"modified":"2023-07-09T19:58:16","modified_gmt":"2023-07-09T23:58:16","slug":"guggenheim-sees-great-opportunities-despite-a-potential-recession-heres-the-playbook-it-recommends","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=33417","title":{"rendered":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends."},"content":{"rendered":"
\n

The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to Guggenheim Partners Investment Management, which has over $190 billion in fixed income assets.<\/p>\n

While recent economic data may point to a \u201crolling recession, rolling expansion environment, \u2026 the magnitude of financial tightening, and the ongoing quantitative tightening by the Fed are all pretty significant headwinds that make economic growth over a multi-year period more challenging,\u201d said Steven Brown, chief investment officer at Guggenheim Total Return
\n GIBIX,
\n -0.09%<\/bg-quote>
\n and Macro Strategies.\u00a0<\/p>\n

\n

The Federal Reserve has raised its benchmark interest rate by a total of 5 percentage points since March last year.\u00a0<\/p>\n

Read:<\/strong> This economist says he can\u2019t rule out a Fed interest-rate cut by year-end. Here\u2019s why.<\/p>\n

Meanwhile, inflation is likely to fall to close to the Fed\u2019s 2% target in 2024, but not this year, Brown said in a phone interview. Inflation and the so-called core inflation numbers, which exclude food and energy prices, are also likely to track closer to each other, noted Brown.\u00a0<\/p>\n

Still, the current market environment presents great opportunities for fixed-income investors, as Treasury yields are at elevated levels not seen in over a decade, Brown said in a phone interview. The yield on the 2-year Treasury
\n TMUBMUSD02Y,
\n 4.939%<\/bg-quote>
\n stands at close to 5%, while the 10-year Treasury
\n TMUBMUSD10Y,
\n 4.066%<\/bg-quote>
\n yield on Friday has climbed to slightly above 4% on Friday.\u00a0<\/p>\n

\u201cThis is a great opportunity for us to get returns for our clients both from the baseline yield as well as kind of abnormally wide or or in some cases significantly wider spreads,\u201d said Brown.\u00a0<\/p>\n

Brown also said he is seeing most value in non-agency structured credits including asset backed securities and non-agency residential mortgage backed securities.\u00a0<\/p>\n

\u201cCredit spreads are wide relative to history, spreads are wide relative to corporate credit, and dollar prices are significantly below par. This means they screen well from both a current yield and total return perspective,\u201d Brown said.\u00a0<\/p>\n

Meanwhile, \u201cfrom a fundamental credit standpoint we are positive as well. We find it prudent in this uncertain environment to invest in senior secured risk on pools of assets or streams of cashflows that we forecast as resilient through an economic cycle,\u201d Brown said.\u00a0<\/p>\n

Brown also said he expects the 10-year treasury yield to be mostly range bound between 3% and 4%. \u201cWe would likely view yields at or above 4% as an attractive entry point to add duration,\u201d Brown said.\u00a0<\/p>\n

Also read: <\/strong>Here\u2019s how Jefferies is responding to a world where everyone can earn roughly 5% on cash<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to Guggenheim Partners Investment Management, which has over $190 billion in fixed income assets. While recent economic data may point to a \u201crolling recession, rolling expansion environment, \u2026 the magnitude […]<\/p>\n","protected":false},"author":1,"featured_media":33418,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-33417","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nGuggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=33417\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=33417\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-09T23:58:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-09T23:58:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688947095_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1279\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33417#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33417\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends.\",\"datePublished\":\"2023-07-09T23:58:14+00:00\",\"dateModified\":\"2023-07-09T23:58:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33417\"},\"wordCount\":446,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=33417#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33417\",\"url\":\"https:\/\/ifintechworld.com\/?p=33417\",\"name\":\"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-09T23:58:14+00:00\",\"dateModified\":\"2023-07-09T23:58:16+00:00\",\"description\":\"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=33417#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=33417\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=33417#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld","description":"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=33417","og_locale":"en_US","og_type":"article","og_title":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld","og_description":"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to","og_url":"https:\/\/ifintechworld.com\/?p=33417","og_site_name":"iFintechWorld","article_published_time":"2023-07-09T23:58:14+00:00","article_modified_time":"2023-07-09T23:58:16+00:00","og_image":[{"width":1279,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688947095_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=33417#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=33417"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends.","datePublished":"2023-07-09T23:58:14+00:00","dateModified":"2023-07-09T23:58:16+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=33417"},"wordCount":446,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=33417#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=33417","url":"https:\/\/ifintechworld.com\/?p=33417","name":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-09T23:58:14+00:00","dateModified":"2023-07-09T23:58:16+00:00","description":"The chance of a U.S. recession occurring by the end of the year are \u201crelatively high,\u201d while inflation is likely to fall toward 3%, according to","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=33417#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=33417"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=33417#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Guggenheim sees \u2018great opportunities\u2019 despite a potential recession. Here\u2019s the playbook it recommends."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33417"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33417\/revisions"}],"predecessor-version":[{"id":33419,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/33417\/revisions\/33419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/33418"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}