Gundlach: Rates, Risk and the Road Ahead

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In this highlight video from DoubleLine’s September client event at the Plaza Hotel in New York, CEO-CIO Jeffrey Gundlach joins Deputy CIO Jeffrey Sherman for a wide-ranging look at bonds, credit and markets. Mr. Gundlach argues that many of the relationships that investors relied on for decades have stopped working, a new world he calls “backward land.” The clearest consequence is a view that runs against conventional wisdom: “In the next recession, long term rates will go up” as a downturn pushes the deficit toward 12% of GDP and interest expense toward $3 trillion a year. With the government increasingly uncomfortable with where rates are headed, he expects more intervention, starting with a larger Operation Twist.

On credit, Mr. Gundlach sees cracks forming around the edges, with AI-related bonds widening well beyond the rest of the market and private credit marks raising real questions. On rating agencies that hand out investment grade stamps, he says, “It’s not an analysis, it’s a price list.” He also walks through where he sees safer ground, including seasoned securitized credit and emerging markets local currency debt, while cautioning that equity valuations and market concentration leave little margin for error.

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Contacts

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DoubleLine Capital LP

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DoubleLine has been managing money for insurers since its inception in 2009. The firm's focus on securitized fixed income and risk management positions it well to manage money for insurers. The firm offers an array of fixed income strategies including dedicated ABS, private ABF, CLOs, infrastructure debt, non-QM, commercial and residential loans, multi-sector fixed income and EM. We understand that the needs of each insurer can vary, and our insurance team is focused on providing our clients with unparalleled access to the investment team and creating custom solutions to meet their distinctive objectives. DoubleLine wants to be your fixed income partner.
 

Paul Schroeder, CFA   
Relationship Manager- Insurance  
paul.schroeder@doubleline.com
Direct: 213-372-3123
Main: 813-791-7333
 

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