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Episode 32: Investment Grade Market Dynamics

Guggenheim Macro Markets

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The Deterioration of Fundamentals in Credit Performance

We're definitely seeing a deterioration in fundamentals over the last few quarters, but it's been slow. The issuer balance sheets are stronger than they have been going into other past recessions. And from the margin side of things, you've seen an increasing cost for products as far as the inputs are concerned. That starts to compress the margins at the issuer and they become less profitable when those costs aren't able to be passed on.

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