Gundlach Does Junk Bond Risk Dance Seeing No Rate Rise in 2015
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Bond manager Jeffrey Gundlach said he doesn’t see the Federal Reserve raising interest rates in 2015 even as Fed Chair Janet Yellen reiterated the central bank remains on course for such a move.
Gundlach, co-founder of DoubleLine Capital, said on Wednesday at the CNBC Institutional Investor Delivering Alpha Conference in New York that if the Fed increases interest rates prematurely, it will have to cut again. The money manager also said that high-yield bonds will be a “debacle” in three to four years, although they are a good investment bet in 2015.