Tags: DoubleLine | Gundlach | Federal Reserve | Rate Increase

DoubleLine's Gundlach Sees No Fed Rate Increase in 2015

Tuesday, 05 May 2015 05:51 PM

Jeffrey Gundlach, chief executive of investment firm DoubleLine Capital, said on Tuesday he believes the U.S. Federal Reserve will probably not raise interest rates this year, in part because of a lack of wage inflation.

Speaking at DoubleLine's annual investor event at the New York Yacht Club, the influential bond investor also cautioned investors to steer clear of high-yield, or junk, bonds, when rates begin to rise.

"Get out of high-yield bonds and buy Treasurys" when the Fed starts pushing rates up, he said. "Worked in every single Fed rate hike in history."

DoubleLine is based in Los Angeles, and had $73 billion in assets under management as of March 31.

It has attracted net inflows of money for 15 straight months, becoming one of the prime beneficiaries of outflows afflicting Allianz SE's Pacific Investment Management Co., which prominent bond investor Bill Gross left in September.

Last year, Gundlach correctly forecast that U.S. Treasury yields would fall, rather than rise as many expected, because inflationary pressures were nonexistent and technical factors such as aging demographics were at play.

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Jeffrey Gundlach, chief executive of investment firm DoubleLine Capital, said on Tuesday he believes the U.S. Federal Reserve will probably not raise interest rates this year, in part because of a lack of wage inflation. Speaking at DoubleLine's annual investor event at the...
DoubleLine, Gundlach, Federal Reserve, Rate Increase
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2015-51-05
Tuesday, 05 May 2015 05:51 PM
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