One of the world's best fund managers, Jeffrey Gundlach took a 180 degree turn on government debt. He said he has purchased "more long-term Treasuries in the last month" compared to his purchases in the last four years.
He said he had started purchasing ten year US Treasury notes after yields rose above 2%. He now sees value in these bonds compared to other instruments, such as stocks, calling them 'overbought.'
Gundlach said, "I bought more long-term Treasuries in the last month than I've bought in four years. I am a fan of Treasuries now. I wasn't a fan of Treasuries in July."
He is the concurrent Chief Investment Officer and Chief Executive Officer of DoubleLine Capital, who manages a total of US$56 billion in assets.
He admitted his views changed when he predicted bonds would peak in price. Now, he is proven correct when ten year T-bonds have dropped below 2% to yield at 1.87%.
Join the Conversation