SERIES2
claymore/guggenheim intermediate investment-grade corporate trust series 2
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DAILY DATA
as of
3/19/10
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Portfolio Status
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Secondary
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Offer Price1
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$1,115.94
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Bid Price2
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$1,071.86
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Liquidation Price3
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$1,071.86
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Estimated Current Return (ECR)
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5.72 %
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Estimated Long Term Return (ELTR)
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4.07 %
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Accrued Interest
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$1.60000
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Principal Amount of Bonds*
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$941.45
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Average Maturity
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7.85 Years
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Estimated Annual Income
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$63.85
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1 The "offer" price represents the net asset value of one unit
of a trust.
2 The "bid" price represents the net asset value of one unit
of a trust excluding deferred sales charge.
3 The "liquidation" price represents the net asset value of
one unit of a trust and includes any deferred sales charges accounted
for if investors liquidate units.
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DEPOSIT INFORMATION
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Inception Date
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4/24/2009
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NASDAQ Ticker Symbol
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CGIIBX
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Inception Unit Price
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$1,004.62
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Inception Bid Price
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$1,004.62
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Inception Liquidation Price
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$965.12
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Deferred Sales Charge Dates
4
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Aug 2009
Sep 2009
Oct 2009
Nov 2009
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| CUSIP - Monthly-Cash |
18387C462 |
| CUSIP - Monthly-Fee/Cash |
18387C488 |
4 Early redemption of units will still cause payment of deferred sales charge.
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ECR is computed by dividing the estimated net annual interest income per unit
by the public offering price. ELTR is calculated using a formula that (i) takes
into consideration, and determines and factors in the relative weightings of,
the market values, yields (taking into account the amortization of premiums
and the accretion of discounts) and estimated retirements of all the bonds
in the trust and (ii) takes into account the expenses and sales charge associated
with each unit of the trust. Therefore, there is no assurance that the ECR and
ELTR will be realized in the future.
Estimated Annual Income per Unit does take into account the impact of the sale of bonds to pay
for the deferred sales charge. Estimated Annual Income per Unit is computed by dividing the estimated annual income
of the underlying bonds by the number of units outstanding. The amount may be lower or
greater than the above-stated amount due to certain factors that may include, but are not
limited to, the selling of bonds to pay for the deferred sales charge, a change in Trust
expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the
Trust may vary as a result of a variety of factors including the Trust's size, redemption
activity, brokerage and other transaction costs and extraordinary expenses.
* Represents the principal amount of the underlying bonds and any cash held in the Trust and
does not take into account the impact of the sale of bonds to pay the deferred sales charge or any
expenses of the Trust. Bonds will be sold to pay the deferred sales charges, to meet redemptions, to
pay expenses and in other limited circumstances. The sale of bonds will affect the principal amount
of bonds included in the Trust and the principal amount of bonds per unit. Units of the Trust, when
redeemed or upon termination, may be worth more or less than their original cost and there can be no
assurance that a unitholder will receive the principal amount of bonds at any particular point in time.
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
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INVESTMENT OBJECTIVE
The Claymore/Guggenheim Intermediate Investment-Grade Corporate Trust ("Trust") seeks to provide a high level of current income and to preserve capital by investing in a portfolio primarily consisting of investment-grade corporate bonds.
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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. All of the corporate bonds held in the Trust will be rated investment-grade quality, as of the Trust’s initial date of deposit (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. 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” in the Trust prospectus. The Trust prospectus can be found under the Literature section of this website.
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 have received ratings that may reflect the creditworthiness of the bond issuer. 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" in the Trust prospectus. The Trust prospectus can be found under the Literature section of this website. 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 serve as the Trust’s portfolio consultant. The portfolio consultant is responsible for assisting the Sponsor with the selection of the Trust’s portfolio.
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SELECTION CRITERIA
The Sponsor considered the following factors, among others, in selecting the bonds:
- The bonds must be rated as investment-grade or above by at least one of the rating agencies (BBB- or above by Standard & Poor’s or Baa3 or above by Moody’s);
- The price of the bonds relative to other bonds with comparable characteristics;
- The diversification of bonds with respect to the issuer with no one issuer comprising more than 20% of the final portfolio;
- Attractiveness of the interest payments relative to bonds with similar characteristics;
- The potential for early return of principal or any event risk which could have a negative impact on the price of the bonds; and
- No bonds issued by companies in the financial sector.
Guggenheim Partners Asset Management, Inc. (GPAM)
Guggenheim Partners Asset Management, Inc., is a wholly-owned subsidiary of Guggenheim Partners, LLC, which offers financial services expertise within its asset management, investment advisory, capital markets, institutional finance and merchant banking business lines. Clients consist of an elite mix of individuals, family offices, endowments, foundations, insurance companies, pension plans and other institutions that together have entrusted the firm with supervision of more than $100 billion in assets. A global diversified financial services firm, Guggenheim Partners, LLC office locations include New York, Chicago, Los Angeles, Miami, Boston, Philadelphia, St. Louis, Houston, London, Dublin, Geneva, Hong Kong, Singapore, Mumbai and Dubai. |
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RISKS AND OTHER CONSIDERATIONS
This Trust is not being offered for sale. This data is for informational purposes only.
As with all investments, you may lose some or all of your investment in the Trust. The value of the units and the bonds held in the portfolio can each decline in value. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
- The Sponsor does not actively manage the portfolio. Because the portfolio is fixed and not managed, in general, the Sponsor only sells bonds at the Trust’s termination or in order to meet redemptions for tax purposes or to pay sales charges and expenses. As a result, the price at which a bond is sold may not be the highest price the Trust could have received during the life of the Trust. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
- No assurance can be given that the Trust’s investment objective will be achieved. This objective is subject to the continuing ability of the respective issuers of the bonds to meet their obligations.
- Due to the current state of the economy, the value of the bonds held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. In the last year, economic activity has declined across all sectors of the economy, and the United States is experiencing increased unemployment. The current economic crisis has affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading economic countries to combat the economic crisis; however, the impact of these measures is not yet known and cannot be predicted.
- An issuer or an insurer of the bonds may be unwilling or unable to make principal payments and/or to declare distributions in the future, may call a security before its stated maturity, or may reduce the level of distributions declared. In addition, there is no guarantee that the issuers will be able to satisfy their interest payment obligations to the Trust over the life of the Trust. This may result in a reduction in the value of your units.
- The financial condition of an issuer or an insurer of the bonds may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period.
- Corporate bonds are fixed rate debt obligations that generally decline in value with increases in interest rates, an issuer’s or an insurer’s worsening financial condition, a drop in bond ratings or when there is a decrease in federal income tax rates. Typically, bonds with longer periods before maturity are more sensitive to interest rate changes.
- The Trust includes securities of companies in the consumer products sector. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
- The Trust will invest in foreign securities. The Trust’s investment in foreign securities presents additional risk. Foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
- Certain corporate bonds may be rated as investment-grade by only one rating agency. As a result, such split-rated securities may have more speculative characteristics and are subject to a greater risk of default than securities rated as investment-grade by any two of Standard & Poor’s or Moody’s.
- If a decrease in net asset value occurs and units of the Trust are tendered for redemption, the Trust may be forced to liquidate some of its bonds which may be at a loss. If such redemptions are substantial enough, provisions of the Trust’s indenture could cause a complete and unexpected liquidation of the Trust before its scheduled maturity, resulting in unanticipated losses for investors.
- Certain of the bonds included in the Trust may be original issue discount bonds or “zero coupon” bonds, as noted in “Trust Portfolio.” These bonds may be subject to greater price fluctuations with changing interest rates and contain additional risks.
- Inflation may lead to a decrease in the value of assets or income from investments.
UITs are fixed and not actively managed. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. Units, when redeemed may be worth more or less than their original purchase price. This UIT is part of a long-term strategy. Units of the portfolio may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult an attorney or tax advisor regarding tax consequences associated with units held outside one of these tax-deferred vehicles. Claymore Securities, Inc. does not offer tax advice.
Please see the Trust prospectus for more complete risk information.
UITs are fixed and not actively managed. Investors can lose some or all of their investment in this Trust. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. There is no guarantee that this portfolio will achieve its investment objective. The economic condition of the issuers of the securities in this portfolio as well as the stock market, in general, may worsen and therefore reduce the value of the units of the portfolio.
This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios at the applicable sales charge, if available. There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next. Units of certain portfolios may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult your attorney or tax advisor regarding tax consequences associated with the purchase of units. Claymore Securities, Inc. does not offer tax advice.
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Investors should carefully consider the investment objectives and policies, risk considerations, charges
and ongoing expenses of any investment product before investing. The prospectus contains this and other
relevant information. Please read the prospectus carefully before you invest. To obtain a prospectus,
please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle,
Illinois 60532, 800-345-7999, or download one by accessing the Literature section
of this website.
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
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