Bloomberg Talks DoubleLine CEO Jeffrey Gundlach Talks US Treasuries
Jun 11, 2025
In this engaging conversation, Jeffrey Gundlach, CEO of DoubleLine Capital and a renowned expert in fixed income, shares his critical views on America's unsustainable debt and its implications for long-term US Treasuries. He discusses the evolving dynamics of investment strategies, including the rise of gold and private credit's complexities. Gundlach also highlights the potential of India as a long-term investment opportunity, cautioning on the current excitement surrounding AI technologies and the risks of market instability.
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US Treasury Bonds Lose Safe Haven Status
- The US debt interest expense is becoming unsustainable amidst large budget deficits and sticky interest rates.
- Long-term US Treasury bonds have lost their status as legitimate risk-free flight-to-quality assets.
Timing Treasury Bond QE Rally
- Buy long-term Treasury bonds just before the Fed announces quantitative easing on them for a major rally.
- This move could cause yields to drop significantly and bond prices to surge.
Gold Emerges as New Safe Haven
- The paradigm has shifted where money is leaving US assets and long bonds no longer serve as safe havens.
- Gold has become a legitimate flight-to-quality asset with increased retail and central bank demand.