Gundlach Sees Falling Yields Curtailing Bond Deposits
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Jeffrey Gundlach, manager of the top-ranked DoubleLine Total Return Bond Fund, said shrinking bond-market returns may prompt investors to stop piling into fixed-income funds as soon as this year.
“If bond yields stay where they are, we’re getting to a place by the end of July where the 12-month trailing return is just over 1 percent,” Gundlach, whose Los Angeles-based DoubleLine Capital LP managed $56 billion as of March 31, said in an interview, referring to broad fixed-income benchmarks. “There will be a rethinking of bond allocations.”