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How the Fixed Income Environment Favors Structured Credit

BY | ETF Database
11:29 am ET 10/05/26 | 7 VIEWS
Now that the market has entered the last quarter of 2026, how should advisors and investors be looking at opportunities within the fixed income space?Key Takeaways: In Guggenheim Investment’s recently published Third Quarter 2026 Quarterly Macro Themes, structured credit is highlighted as a strong possible choice for today’s fixed income portfolio. The report also pointed out that while inflation appears to be receding, the Federal Reserve’s patience for inflation has all but disappeared, and thus another rate hike may come before year end. The Guggenheim Securitized Income ETF (GISC) offers compelling access to the structured credit market, amplified through Guggenheim’s own approach and the advantages of active management. For those seeking some guidance, Guggenheim Investments recently released its Third Quarter 2026 Quarterly Macro Themes. Among other topics, the Guggenheim report examined inflation, interest rates, and what fixed income securities offer a compelling path forward. To start, the Guggenheim team noted that inflation does seem to be on the decline, which is good news for the market. However, the report added that the Fed’s patience for inflation has evaporated, given how many years the committee has spent trying to get readings to the right levels. As such, Guggenheim assessed that one more rate hike is potentially on the agenda this year. See More: Rate Hikes are Back: Mitigate Rate Risk With GCSH For fixed income investors, this environment offers a strong entry point, according to the Guggenheim report. Given that yields are high at the moment, those who do take the plunge into fixed income could find strong return opportunities. Of course, there are some sectors of the fixed income market that could better capitalize on this environment than others. “We continue to find better compensation for risk in structured credit—including non-Agency residential mortgage-backed securities and investment-grade asset-backed securities where complexity provides excess premium—and in infrastructure credit tied to the power, transmission, and the data-center buildout,” the Guggenheim report added.”Take on Structured Credit with GISCAdvisors and investors who are looking to tap into the structured credit market may wish to do so through a fund like the Guggenheim Securitized Income ETF (GISC). GISC seeks to generate attractive current income while keeping total return in mind, all through investments within structured credit securities. These includes asset-backed securities (ABS), mortgage-backed securities (MBS), collateralized loan obligations (CLOs), and more. See More: MFS Grows ETF Lineup With 2 New Active Income Funds The Guggenheim team picks securities to invest in following a thorough credit research process. Furthermore, GISC aims to amplify its return potential through sectors and assets that provide complexity premiums, along with discounts compared to their intrinsic value. When choosing securities and sectors, GISC’s portfolio team also keeps geopolitical and macroeconomic issues in mind. Combined with the fund’s active management, this approach puts GISC in a good position to benefit from favorable conditions within structured credit. For those who are aiming to bolster their fixed income portfolio with securities within the structured credit market, this fund may very well be worth a shot. For more news, information, and analysis, visit the Fixed Income Content Hub.

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