Investment Objective
The Claymore/Guggenheim Short Intermediate Investment-Grade Corporate Trust, Series 2 ("Trust") seeks to provide current income and to preserve capital by investing in a portfolio primarily consisting of investment-grade corporate bonds.
PRINCIPAL INVESTMENT STRATEGY
The Trust will invest in a portfolio of corporate bonds. The Sponsor will select bonds that it believes have the best chance to meet the Trust’s investment objective over its life.
The portfolio of the Trust consists of corporate debt obligations which may include U.S. government bonds, corporate bonds, mortgage and asset-backed securities, loan participations and corporate instruments. As of the Trust’s initial date of deposit (the “Inception Date”), the Sponsor believes that the average weighted maturity of the bonds in the Trust falls within the short intermediate range. The range of maturity on the bonds in the Trust is two to six years from the Inception Date. All of the corporate bonds held in the Trust will be rated investment-grade quality, as of the Inception Date, by at least one of the following ratings agencies: Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“Standard & Poor’s”), or Moody’s Investors Service (“Moody’s”). Such rating relates to the underlying bonds and not the Trust or the value of the units, which fluctuate. Investment-grade bonds are bonds that are rated at least in the category of BBB by Standard & Poor’s or Baa by Moody’s. A rating in the category of BBB or Baa is the lowest possible investment-grade rating. See “Description of Bond Ratings” for details.
Certain bonds in the Trust may be covered by insurance policies obtained from corporate bond insurers identified in “Trust Portfolio,” which guarantee payment of principal and interest on the bonds when due. As a result of such insurance, the insured bonds may receive ratings that reflect the creditworthiness of the bond insurer. Please note that the insurance relates only to the insured bonds in the Trust and not to the units or the market value of the bonds or of the units.
The Trust intends to pay interest distributions each month and expects to prorate the interest distributed on an annual basis; see “Distributions.” The record dates and distribution dates for principal and interest distributions are the 15th and 25th of each month, respectively. Furthermore, investors may receive principal distributions from bonds being called or sold prior to their maturity or as bonds mature.
The Sponsor has selected Guggenheim Partners Asset Management, Inc. (“GPAM”), a wholly-owned subsidiary of Guggenheim Partners, LLC, to assist the Sponsor with the selection of the Trust’s portfolio.