How TCW Galileo Gets Stellar Returns

Co-manager Jeffrey Gundlach beats other mortgage-backed funds by leaning toward securities with less prepayment risk

Mortgage-backed funds have delivered steady returns over the past three years as many other asset classes suffered heavy losses. In general, mortgage-backed securities funds are much less volatile than other types of bond funds because they're less sensitive to changes in interest rates.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.