Another day, another high-profile investor declaring the US economy is in trouble. Jeffrey Gundlach, the CEO of investment management company DoubleLine Capital, expects a US recession as soon as this year amid the higher for longer interest rate environment.
"There's a lot of recessionary signals out there," he said, speaking at a webinar hosted by David Rosenberg, founder and president of Rosenberg Research. "There's more of a recessionary feel than an inflationary feel," he added. He also expressed concerns about the growing debt burden of the US government, fearing that it could eventually lead to a restructuring of US government debt, which would be unprecedented.
"I've got this crazy idea that I want to buy only the lowest coupon Treasuries … because if I have a very low coupon Treasury I don't have to worry about being restructured," he said. "I worry that the federal government might be forced to restructure the Treasury debt."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
