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‘I take that as a very bad sign’: Billionaire bond king Jeffrey Gundlach explains how the Fed’s inability to control the repo rate is masking deeper issues

Jeffrey Gundlach, founder of DoubleLine Capital, speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016.  REUTERS/Brendan McDermid

  • Jeffrey Gundlach, the CEO and chief investment officer of DoubleLine Capital, isn’t buying the Federal Reserve’s explanation of why rates spiked in the repo market.
  • Gundlach thinks a lack of liquidity and demand is responsible for the rate spike — not the confluence of tax payments and mismatches between Treasury bill maturity and issuance, which has previously been identified as a cause.
  • He says the repo market is “out of control” and a “problem.”
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There’s no denying that the Federal Reserve has been at the forefront of investor attention in 2019.

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Source:: BusinessInsider.Com