Gundlach on Bond Yields and the Broader Market

The market would be hurt if yields on 10-year Treasuries climbed to 3 percent or higher next year, says Jeffrey Gundlach as reported in Bloomberg. The DoubleLine Capital CIO has called president-elect Trump’s policies “bond unfriendly” and says that Treasury yields above 3 percent (benchmark Treasuries are currently trading below 2.5 percent) “would start to have a real impact on market liquidity in corporate bonds and junk bonds.” Gundlach says that he will be looking… Read More

DoubleLine’s Gundlach Identifies Downward Pressures, Warns Against Fed Rate Hike

Jeffrey Gundlach, CEO of DoubleLine Capital, delivered a fairly grim assessment in a recent webcast, Financial Advisor reports. Characterizing the recent bump in stocks as a bear-market rally, Gundlach pointed to a combination of factors that will put downward pressure on markets, expressed concern about the impact a Fed rate increase would have, and described positive market sentiment as perplexing. He identified valuation as one problem: “The S&P charts look horrific,” he said, “when you… Read More