4min chapter

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Episode 30: The Structured Credit Value Proposition Right Now

Guggenheim Macro Markets

CHAPTER

Structured Credit and Corporate Bonds - What's the Difference?

The total absolute level of income investors can earn on these is much better than it was. Part of the reason these excess yields exist in structured credit is because it's a small market. It tends to be dominated by perhaps 15 or 20 institutional investors who probably speak for two thirds of the trading activity in the market. And with the volatility that we saw last year and that we're seeing now sitting here in late February, early March, structured credit and its thinner investor base will take longer to normalize.

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