Positioned for Choppier Waters from Guggenheim Partners

After several quarters of low volatility, tight spreads, and abundant liquidity, financial conditions are shifting.

Here are the key takeaways from our latest report:

• The complacent environment, characterized by low volatility and a scarcity of bonds to buy, is changing.
  
• The shift from quantitative easing to quantitative tightening took its toll in the first quarter of 2018 as rate, credit, and equity volatility all spiked.
• We expect more of the same going forward and are preparing portfolios accordingly.
• As we approach the turn in the credit cycle, our portfolio managers have been shortening portfolio duration, opportunistically moving up in credit, and maintaining a reasonable liquidity buffer for picking up undervalued credits in periods of market weakness.

Steve Brown and Matt Bush share insights from
the Second Quarter Fixed-Income Outlook

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