- Bond manager cites rising yields, slowing economic growth
- He's warned that high-yield troubles show weakness in economy
Jeffrey Gundlach, the chief investment officer of DoubleLine Capital, said issuance of high-yield debt will probably collapse as yields have risen and the economy is slowing.
Problems in the junk-bond market, fueled by falling energy and commodity prices, peaked in December when a distressed debt fund run by Third Avenue Management gated redemptions. Gundlach, who spoke Monday at the Inside ETFs conference in Hollywood, Florida, has warned for more than a year that troubles in high-yield debt were an early sign of weakness in the economy.
U.S. high-yield issuance so far this month is down to nine deals totaling about $4.8 billion, compared with 32 deals totaling $22 billion for all of January 2015, according to Bloomberg data.