Guggenheim Loan Craters, Fund Hits GFC Lows As Feds Probe Walter's Empire
1 min readAnalysis by AlgoThesis Editorial Desk
The story
The first-lien loan issued by GIH Borrower LLC and due in 2031 fell to a low of 72 cents on the dollar Monday, according to Bloomberg data. The instrument is tied to Guggenheim Investments, the asset-management arm of Mark Walter’s Guggenheim Partners, and has a face value of $1.18 billion.
The discount reflects lender concern about deteriorating earnings, accounting practices and ongoing federal investigations involving Walter’s broader financial empire. The reported move brings the fund to levels associated with the global financial crisis, while management is attempting to contain the concerns.
The report does not identify a listed equity issuer or provide a dated hearing, filing, earnings release or other forward event that would resolve the credit questions. Key items to watch are the investigations, any additional disclosures on the borrower’s finances and whether the loan’s market price stabilizes or deteriorates further.
The two-sided take
Wrong if
The credit repricing could stabilize if management provides credible financial disclosures or investigators resolve concerns without further action.
Published read · research, not advice