November 13, 2018 / 10:20 PM / a month ago

DoubleLine's Gundlach: U.S. corporate bonds 'most dangerous' part of market

NEW YORK, Nov 13 (Reuters) - U.S. corporate bonds are by far the most dangerous part of the bond market and more than half of triple-B-rated debt would have a below-investment-grade rating based on leverage alone, Jeffrey Gundlach, chief executive officer of DoubleLine Capital, warned on an investor webcast on Tuesday.

Gundlach, known on Wall Street as the Bond King, said that the driver of U.S. economic growth is deficit spending and borrowing from the future. “It is very bad that the deficit is rising” late in this economic cycle, he said. (Reporting by Jennifer Ablan and Trevor Hunnicutt Editing by Leslie Adler)

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