DoubleLine’s Jeffrey Gundlach is convinced a recession is coming. But the ‘Bond King’ is finding stellar returns in some risky pockets of the capital markets.
Hi. Aaron Weinman here. The "Bond King" has spoken! Jeffrey Gundlach, the chief executive of DoubleLine Capital, is convinced recession is headed our way in 2023. But not all is doom and gloom. He likes the look of lower-rated investment-grade securities, specifically those classified as triple B. He also fancies the double B bond, which is the highest rung of the high-yield market. These are companies, or sometimes countries, securities that yield a lot more than the highest-rated borrower like Google or Apple, but do come with risks. For Gundlach, that risk is worth it, especially with short-term interest rates rising. Borrowers living in the triple- or double-B spaces will have to make more costly interest payments in the coming months. Insider''s Hayley Cuccinello listened to the outspoken billionaire at an event in Huntington Beach, California. Check out her story here. And, happy Friday, readers. It''s time for the Banker of the Week! If this was forwarded to you, sign up here . Download Insider''s app here . 1.
DoubleLine’s Jeffrey Gundlach is convinced a recession is coming. But the ‘Bond King’ is finding stellar returns in some risky pockets of the capital markets.
Hi. Aaron Weinman here. The "Bond King" has spoken! Jeffrey Gundlach, the chief executive of DoubleLine Capital, is convinced recession is headed our way in 2023. But not all is doom and gloom. He likes the look of lower-rated investment-grade securities, specifically those classified as triple B. He also fancies the double B bond, which is the highest rung of the high-yield market. These are companies, or sometimes countries, securities that yield a lot more than the highest-rated borrower like Google or Apple, but do come with risks. For Gundlach, that risk is worth it, especially with short-term interest rates rising. Borrowers living in the triple- or double-B spaces will have to make more costly interest payments in the coming months. Insider''s Hayley Cuccinello listened to the outspoken billionaire at an event in Huntington Beach, California. Check out her story here. And, happy Friday, readers. It''s time for the Banker of the Week! If this was forwarded to you, sign up here . Download Insider''s app here . 1.