Aug 8 DoubleLine's Jeffrey Gundlach said on
Friday that the junk bond market is 'not cheap' even after its
Investors pulled a record $7.1 billion from U.S.-based junk
bond funds in the latest week ended Wednesday, according to
Lipper data released on Thursday.
High-yield bonds delivered a negative total return of 1.42
percent in the week ended Aug. 1, their worst weekly performance
in more than two years. Meanwhile, the yield premium investors
demand for holding these low-rated bonds shot up by 0.50
percentage point to more than 4.2 percentage points above
comparable U.S. Treasury debt. Just over a month ago, that
spread had been as low as 3.35 percentage points, the smallest
"I don't see a mass exodus from the junk bond market,"
Gundlach said. But he added: "The junk bond market is not
Gundlach, who as co-founder and chief investment officer at
DoubleLine helps oversee $52 billion in assets, is widely
followed for his investment calls including a bet earlier this
year that Treasuries were undervalued relative to other sectors.
(Reporting By Jennifer Ablan; Editing by Bernard Orr)