Scott Minerd, Guggenheim’s global chief investment officer, said Tuesday that the widespread expectation on Wall Street for rising interest rates was likely wrong and the the benchmark U.S. Treasury rate could even turn negative.
Minerd told CNBC’s Brian Sullivan on CNBC’s “The Exchange” that a model used by his firm to make investment decisions showed that interest rates were still on a downward trajectory overall despite a bounce in recent months.
“Whether it’s negative rates or rates which are barely positive, I think that over the course of the next 18 months, we should expect to see a high likelihood that we end up with significantly lower long-term rates than we have today,” Minerd said. Guggenheim manages $310 billion.