Thread by @DLineCap

Tune in this Tuesday, December 10, as DoubleLine CEO Jeffrey Gundlach and portfolio manager Andrew Hsu present "A Rolling Loan Gathers no Loss".

Follow along here for some highlights of @DLineCap CEO Jeffrey Gundlach’s presentation, “A Rolling Loan Gathers No Loss”, a title he credited to @Jkylebass and a metaphor for the corporate bond market.

#arollingloangathersnoloss #yieldstarvation

"Sustained negative rates in Europe have really changed people's attitudes & behavior... people are wondering if they should throw out bonds from their efficient frontier analysis & just not include them in their asset class allocation considerations." - Jeffrey Gundlach

"It says to me that there isn't sufficient liquidity in the system and there isn't sufficient demand, therefore, to float o/n money repo at anything close to the fed funds rate. It's sort of the market rejecting the interest rate levels that the Fed has set." - Jeffrey Gundlach

“The addition of reserves in the repo market has reversed 40% of the QT the Fed were able to achieve during that time period they were doing it… we're already almost halfway back to the apex of where we were as a consequence of QE programs in the past.” - Jeffrey Gundlach

“One thing that I find very fascinating – and the pattern has continued to endure – as long as the Fed is growing their balance sheet, one should expect the yield curve to steepen” – Jeffrey Gundlach

#aRollingLoanGathersNoLoss #YieldCurve #CentralBanks

“Dollar cycles, as I've said repeatedly in the past, tend to go on for multiple years and be quite persistent. And they are highly correlated with the fed funds rate, particularly the fed funds rate versus what is going on in other central banks.” – Jeffrey Gundlach

“One of the reasons I think the dollar has stayed strong this year has been the yield starvation that exists in the world.”

“Investors have been forced out of need and yield starvation to buy U.S. assets naked; meaning, they're taking the dollar risk. And in spite of all that money coming into the U.S. dollar and not being hedged, the dollar has barely budged this year. “

“To me, that reinforces my forecast that the dollar's next big move will be to the downside.” – Jeffrey Gundlach

#arollingloangathersnoloss #USD #macro #risk #rates

“U.S. debt outstanding has really exploded. Of course we all know that. This goes back to the late 1940s. And we divide it into the three typical sectors...
Corporate debt has really put on the turbo chargers.” – Jeffrey Gundlach

#arollingloangathersnoloss #credit #risk

“The quality of the corporate bond market has completely collapsed over the past 30 years.” – Jeffrey Gundlach

#arollingloangathersnoloss #credit #rates #bonds #risk

“Interesting fun fact to know and tell is that now Greek 10-year yields are actually lower than the United States 10-year yields. It's so hard to believe. It's really amazing what a difference a few years can make.” – Jeffrey Gundlach

#arollingloangathersnoloss #rates #risk

"Here's the 10-year U.S. Treasury yield. It's looks for all the world like it's putting in a triple bottom." - Jeffrey Gundlach

#arollingloangathersnoloss #rates #risk #macro