Friday, August 8, 2014

The Man Who Called This Year's Decline In Interest Rates

Ten year yield 2.38% after hitting a thirteen month low earlier this morning.
From Bloomberg, Aug. 5:
Gundlach Rate Bet Wins Most Cash As MBS Funds Lose
Jeffrey Gundlach defied conventional thinking earlier this year by betting that interest rates would fall rather than rise. Investors are rewarding him for the call.

Gundlach’s $34 billion DoubleLine Total Return Bond Fund gathered assets as the majority of rival mortgage-backed securities funds lost investors in the first half of the year. DoubleLine Total Return also had the biggest 12-month yield along with the second-highest returns as of July 31 in the group of funds.

“The first thing people say about why they invest with us is the performance with a capital A,” said Gundlach, 54, the co-founder of DoubleLine Capital LP, who this year added a drip painting by abstract expressionist Jackson Pollock to his art collection. “But, the small letter b, as one guy said to me, is we like the way you move.”...MORE
Okay so he doesn't spell so good...

Previously:
Feb. 5 
Chartology: "Interest Rates May Tumble"
Feb. 4
"Interest Rates Are Still Heading Lower"
10-year yield 2.6240% up 0.0430.
Jan. 21 
Chartology: Yields Lower, Then Higher (in line With DoubleLine's Jeff Gundlach)
The yield on the 10-year is ticking down again this morning, 2.8270% after trading at 3.0260 on Dec. 31.