A loan from Guggenheim Investments’ financing entity slid to a new low on Monday, even after the firm convened a call last week with lenders to assuage concerns about its second-quarter earnings.
A $1.18 billion loan issued by GIH Borrower LLC due in 2031 was last indicated down more than 5 cents on Monday at 72.5 cents on the dollar, according to data compiled by Bloomberg. That’s the lowest since the debt was priced in November 2024.
Guggenheim Investments — the asset management arm of Mark Walter’s Guggenheim Partners — reported last week that revenue fell 38% year-over-year in the second quarter, while a measure of earnings collapsed 77%. The first-lien loan had briefly recovered after the firm clarified that the drop was largely attributable to a delay in reporting some advisory fees at Guggenheim Private Investments, where accounting was the subject of a whistleblower report that helped spark a wider probe into Walter’s financial empire.
Anne Walsh, chief investment officer of the asset-management business, said in a Bloomberg Television interview Monday that the firm has “engaged with our auditors and we feel that the accounting treatment was appropriate” at the subsidiary, known as GPI.
The debt’s price drop is one gauge of how investors are evaluating the potential impact to Walter’s businesses from federal investigations, given that his various companies don’t trade on public exchanges.
A representative for Guggenheim didn’t immediately respond to requests for comment.
Written by: Katherine Schwartz @Bloomberg
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