Jeffrey Gundlach (born October 30, 1959) is an American investor and businessperson. Jeffrey Gundlach is a graduate of Dartmouth College where he graduated summa cum laude in math and philosophy in 1981 and attended Yale University for a Ph.D. in theoretical mathematics before dropping out.

His father was a chemist for Pierce and Stevens Chemical Corp.

Gundlach was formerly the head of the $9.3 billion TCW Total Return Bond Fund, where he finished in the top 2% of all funds invested in intermediate-term bonds for the 10 years.

“In a February 2011 cover story, Barron’s called Jeffrey Gundlach the “King of Bonds”

 

In a February 2011 cover story, Barron’s called him the “King of Bonds”.

Jeffrey Gundlach’s investment career had a number of ebbs and flows. In 2009 he was fired by TCW. Jeffrey Gundlach then founded Doubleline, along with Philip Barach and 14 other members of Gundlach’s senior staff from TCW.

On March 10, 2011, Jeffrey Gundlach reportedly liquidated 55 percent of his personal holdings in municipal bonds. However, the decline Jeffrey Gundlach predicted in municipal bonds did not happen.

Nevertheless, Jeffrey Gundlach is included in the 50 most influential list of Bloomberg Markets Magazine.

Jeffrey Gundlach was married to Nancy Draper, a bassist in his former band, “The Greens,” she filed for divorce from the billionaire bond investor in 2010 after being married for more than 20 years.

Jeffrey Gundlach has a New York art museum named after him, Buffalo Albright-Knox-Gundlach Art Museum after he donated $42.5 million to the museum.

Jeffrey Gundlach’s investment career had a number of ebbs and flows. In 2009 he was fired by TCW. Jeffrey Gundlach then founded Doubleline, along with Philip Barach and 14 other members of Gundlach’s senior staff from TCW

 

Jeff Gundlach’s credit market warning has been getting an uncanny amount of airtime lately.

Jeff Gundlach, founder of Doubleline, call to fame and fortune has come through making a number of profitable calls as a bond investor. So much so that Jeff Gundlach was crowned the “King of Bonds” in 2011 by Barron’s.

But lately, Jeff Gundlach’s credit market warning that bonds are in the “twilight zone” has been stealing the limelight

Jeff Gundlach’s bearish credit market call was recently put forward in a interview with CNBC, as well as his latest web presentation.

Jeff Gundlach’s bearish credit market view is a recurring theme in all his interviews which have been increasing in frequency over the last few weeks.

The fragile state of corporate bonds and the ballooning US public deficit is the crux of Jeff Gundlach’s credit market warning

Jeff Gundlach believes that the modern market’s landscape resembling ‘the Twilight Zone’ thanks to President Trump’s insistence on rate cuts.

Jeff Gundlach frets over the current Trump administration that could favor expanding economic growth through an even larger public debt. How will the current US administration, cut taxes and invest a trillion dollars on public infrastructure projects without sending the deficit to the moon?

The US deficit is growing far faster than predicted.

I also said that Donald Trump loves debt and he’s never paid back debt, I think, ever. And he’s gone bankrupt…so you can bet dollars to doughnuts that he’ll expand the deficit” – Jeff Gundlach

Jeff Gundlach’s credit market warning centers on the deficit taking a moonshot

“When I predicted before the primary started in 2016 at Donald Trump was gonna win…But I also said that Donald Trump loves debt and he’s never paid back debt, I think, ever. And he’s gone bankrupt…so you can bet dollars to doughnuts that he’ll expand the deficit”.

But it was the 40 banks bailout that saved the debt-ridden Trump organization.

The banks figured out that if they bankrupted the debt-ridden Trump organization they would lose their investments. So the banks decided that it was in their interest to keep the Trump brand alive. The Trump brand was worth so much that the bankers were willing to take a hair cut and hang onto the Trump name. Put another way the banks decided that the Trump organization was worth more financially solvent than ruined, financially dead. So, Trump, the businessman survived and thrived by being a great brand promoter (a showman).

Jeff Gundlach’s credit market warning, based on a US administration expanding the deficit could hold water

But king dollar is the world’s most valuable brand so even if the Trump administration expands the deficit to unsustainable levels the bankers will end up taking a haircut to save the dollar.

So our fifty-cents worth is that Trump the president knows that.

Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors

Jeff Gundlach’s credit market warning based on a bear market in Treasuries is unlikely to play out

The Fed could be done with raising rates for 2019. In fact, a number of market players are now calling for a rate cut from the Fed. If so, that makes fix income investments, particularly Treasuries attractive. Moreover, in these current tumultuous times, the risk-off trade goes hot. So the trend of investors hunkering down in safe-haven assets, like US Treasuries, USD, and precious metals could continue, The America first policy of the Trump administration is strengthen dollar hegemony, after all, what is the alternative.

Nevertheless, Jeff Gundlach’s credit market warning is probably more relevant to junk debt/bonds

Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.

So these are companies not too big to save should another financial crisis occur.

Jeff Gundlach’s credit market warning could be relevant to junk bonds, auto loans, and student debt

Subprime mortgages not so much this time since the banks have been cautious about making home loans.

A slowing economy, rising inflation due to input costs such as higher oil prices, rate hikes could all make highly leveraged households and businesses vulnerable to an economic downturn. So Jeff Gundlach’s credit market warning could be more relevant to the fragile segment of the credit market. See Jeff Gundlach’s credit market warning video.