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.”
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