The Credit Market Is ‘Next Shoe to Drop’

The chief investment officer of Guggenheim Partners, managing over $225 billion, is focusing on high-quality bonds and anticipating challenges in the credit market. Despite market optimism, she foresees potential risks, especially for lower-quality borrowers, given the Federal Reserve’s stance and the likelihood of increasing defaults and bankruptcies. While high-quality credit remains relatively stable, weaker credits without significant cash reserves could struggle.