In an extensive interview with Goldman’s Marina Grushin (republished below), the Guggenheim Investments Chairman once again lays out his bearish case, starting with what he believes is the most mispriced asset, i.e., credit, stating that credit spreads are too
tight right now, and noting that “after adjusting for expected credit losses, HY bonds offer minimal value over Treasuries. While carry is reasonably attractive and trailing defaults are modest, a credit investor should not take for granted the ability to liquidate a position when the value proposition changes. The door is always smaller on the way out.”
