An affiliate of Mark Walter’s investment firm Guggenheim Partners began buying debt issued by the group’s asset management unit this week, lifting the price of a loan that had traded at distressed levels. The $1.2bn loan was quoted at 84 cents on the dollar on Friday after the affiliate made purchases, according to sources. The transactions were carried out through Bank of America, which oversees the security.

The loan had plunged as much as 30% this month and was quoted below 70 cents last week. Guggenheim and Bank of America declined to comment. The buying follows two insurance entities controlled by Walter’s TWG Group disclosing that US prosecutors were investigating whether they properly labelled $20bn of assets tied to other parts of his business empire.

Guggenheim is separate from TWG but both are led by Walter. TWG has said it is cooperating with the investigation. The loan, issued by Guggenheim entity GIH Borrower, had fallen in price after executives held a call with lenders, as previously reported.

That call discussed a 2025 whistleblower report into Guggenheim Private Investments, which advises clients on private credit. Executives also told lenders some clients were affiliated with Walter’s wider businesses. Guggenheim has said it provided the allegations to its external auditor, which issued unqualified opinions for 2024 and 2025.

Bloomberg earlier reported the buyback plan.