Search ForexCrunch

At the Sohn Investment Conference  on Monday, Jeffrey Gundlach, Wall Street’s bond king and Founder and Chief Executive Officer of DoubleLine, which manages $120 billion, recommended investors to buy interest rate volatility on long maturity the US Treasuries.

Key Quotes  (via Reuters):

U.S. interest rates “cannot maintain the low volatility” they have experienced in the past eight years and it is “not inconceivable” that interest-rate volatility could double.

 Recommended using the iShares 20+ Year Treasury Bond ETF as a way to execute the trade.

“I think this is an extremely compelling time to do this trade and an extremely important environment where outcomes are so binary.”