A $1.18 billion loan issued by GIH Borrower LLC, a financing entity of Guggenheim Investments, fell to a new low of 72.5 cents on the dollar on August 24, 2026. This marks the lowest point for the debt since it was priced in November 2024. The decline occurred despite Guggenheim Investments holding a call with lenders last week to address concerns about its second-quarter earnings. The loan, which matures in 2031, had dropped by more than 5 cents on Monday alone.
This significant drop in the loan's value followed Guggenheim Investments' report of a 38% year-over-year decrease in revenue and a 77% plunge in a key earnings measure during the second quarter. The firm attributed the earnings hit primarily to a delay in recognizing certain advisory fee revenue from its private investments unit, Guggenheim Private Investments (GPI). This accounting issue, according to Guggenheim, is a timing problem rather than a fundamental flaw, and Anne Walsh, CIO of the investment-management unit, defended the accounting treatment as appropriate.
The market's nervousness is exacerbated by ongoing federal investigations and a whistleblower complaint related to Mark Walter's private companies, though Guggenheim states these are separate from the specific loan. Investors, who receive only periodic updates, were surprised by the magnitude of the earnings drop. The fact that the loan continued to fall even after Guggenheim's explanations indicates that lenders remain unconvinced and are concerned about the uncertainty surrounding the accounting practices and the broader probes. The trading price of 72.5 cents on the dollar signals that the market perceives significant risk regarding the full repayment of the debt.
