Money and Finance
- Bond Investor Gundlach Buys Stocks, Sees 'kaboom' Ahead
Found via the Corner of Berkshire & Fairfax. It’s mid-October, and Jeffrey Gundlach is giving a stump speech to a luncheon crowd of about 200 financial advisers and investors at Los Angeles’s City Club. The renowned money manager’s theme: the...
- Stocks Won't Repeat Lost Decade, Gundlach Says (video)
Sept. 13 (Bloomberg) -- Jeffrey Gundlach, founder and chief executive officer of DoubleLine Capital LP, talks with Bloomberg's Tom Keene about the outlook for global stock markets. Gundlach also discusses Federal Reserve monetary policy and U.S. Treasuries....
- Bob Rodriguez Commentary: All In!
The Fed initiated QE3 today by announcing its plan to buy $40 billion per month of agency mortgage-backed securities, finishing Operation Twist by year end and keeping the federal funds rate at 0 to ¼ percent through at least mid-2015. Additionally,...
- Gundlach: A Debt Ceiling Impasse Could Drive Rates Lower
Failing to raise the debt ceiling would be a “huge financial calamity,” according to Federal Reserve Chairman Ben Bernanke and the general consensus view. But that opinion is “exactly wrong,” at least as far as the Treasury market is concerned,...
- Gundlach: Treasuries Will Rally When Qe2 Ends - By Robert Huebscher
The bonds that PIMCO’s Bill Gross sold to take a 3% short position in the Treasury market may have found a buyer in Doubleline’s Jeffrey Gundlach. In a conference call with investors last week, Gundlach said that Treasury prices would rise in the...
Money and Finance
Gundlach Steers Clear of Mortgage REITs
Investors should avoid real estate investment trusts that buy U.S. mortgage-backed securities because they’ll continue to cut dividends as homeowners refinance mortgages at lower rates, said DoubleLine Capital LP’s Jeffrey Gundlach.
“I expect further dividend cuts in the quarters ahead and would avoid MBS REITS for the time being,” Gundlach, who heads the $21 billion Los Angeles-based money manager, said in an e- mailed statement.
Mortgage REITs including Annaly Capital Management Inc. (NLY), Hatteras Financial Corp. (HTR) and Capstead Mortgage Corp. announced dividend reductions this month, while rivals American Capital Agency Corp. (AGNC), Two Harbors Investment Corp. (TWO) and MFA Financial Inc. maintained their quarterly payouts. The industry’s shares have returned 0.65 percent over the past 12 months, assuming reinvested dividends, declining 5.7 percent since mid-year as loan rates fell to record lows, according to a Bloomberg index. (BBREMTG)
“I sold all MBS REITS a few months back,” said Gundlach, whose main bond fund has beaten 99 percent of rivals this year, according to data compiled by Bloomberg. “I figured the dividends were going to be cut.”
The trusts are lowering payouts because prepayments are increasing on government-backed securities, most of which are carried by REITs above 100 cents on the dollar, which means “their yields are going lower,” Gundlach said.
“I expect further dividend cuts in the quarters ahead and would avoid MBS REITS for the time being,” Gundlach, who heads the $21 billion Los Angeles-based money manager, said in an e- mailed statement.
Mortgage REITs including Annaly Capital Management Inc. (NLY), Hatteras Financial Corp. (HTR) and Capstead Mortgage Corp. announced dividend reductions this month, while rivals American Capital Agency Corp. (AGNC), Two Harbors Investment Corp. (TWO) and MFA Financial Inc. maintained their quarterly payouts. The industry’s shares have returned 0.65 percent over the past 12 months, assuming reinvested dividends, declining 5.7 percent since mid-year as loan rates fell to record lows, according to a Bloomberg index. (BBREMTG)
“I sold all MBS REITS a few months back,” said Gundlach, whose main bond fund has beaten 99 percent of rivals this year, according to data compiled by Bloomberg. “I figured the dividends were going to be cut.”
The trusts are lowering payouts because prepayments are increasing on government-backed securities, most of which are carried by REITs above 100 cents on the dollar, which means “their yields are going lower,” Gundlach said.
- Bond Investor Gundlach Buys Stocks, Sees 'kaboom' Ahead
Found via the Corner of Berkshire & Fairfax. It’s mid-October, and Jeffrey Gundlach is giving a stump speech to a luncheon crowd of about 200 financial advisers and investors at Los Angeles’s City Club. The renowned money manager’s theme: the...
- Stocks Won't Repeat Lost Decade, Gundlach Says (video)
Sept. 13 (Bloomberg) -- Jeffrey Gundlach, founder and chief executive officer of DoubleLine Capital LP, talks with Bloomberg's Tom Keene about the outlook for global stock markets. Gundlach also discusses Federal Reserve monetary policy and U.S. Treasuries....
- Bob Rodriguez Commentary: All In!
The Fed initiated QE3 today by announcing its plan to buy $40 billion per month of agency mortgage-backed securities, finishing Operation Twist by year end and keeping the federal funds rate at 0 to ¼ percent through at least mid-2015. Additionally,...
- Gundlach: A Debt Ceiling Impasse Could Drive Rates Lower
Failing to raise the debt ceiling would be a “huge financial calamity,” according to Federal Reserve Chairman Ben Bernanke and the general consensus view. But that opinion is “exactly wrong,” at least as far as the Treasury market is concerned,...
- Gundlach: Treasuries Will Rally When Qe2 Ends - By Robert Huebscher
The bonds that PIMCO’s Bill Gross sold to take a 3% short position in the Treasury market may have found a buyer in Doubleline’s Jeffrey Gundlach. In a conference call with investors last week, Gundlach said that Treasury prices would rise in the...