'LQD' corporate bond ETF looks to be the most overvalued bond asset: Jeffrey Gundlach
CNBC's "Halftime Report" is joined by DoubleLine Capital CEO Jeffrey Gundlach to discuss his view of bonds and stocks amid the coronavirus pandemic.
Billionaire hedge fund manager Jeffrey Gundlach said Monday a popular exchange-traded fund is incredibly overvalued given some of the Federal Reserve’s actions to support the economy during coronavirus pandemic.
“The LQD looks to be about the most overvalued asset in the bond market to me,” Gundlach, CEO of Doubleline Capital, told CNBC’s Scott Wapner on “Halftime Report,” referring to the iShares IBoxx $ Investment Grade Corporate Bond ETF (LQD). “These things are up way off their lows.”
The ETF has rallied nearly 23% since hitting a low on March 19. Gundlach also noted the ETF came within 3% of a record after the Fed announced on April 9 it would buy corporate bonds through exchange-traded funds, specifically LQD.
“The Fed action has certainly swooped that up,” he said.
That rally in corporate bonds coincided with a massive surge in equity prices. Since late March, the S&P 500 has soared more than 25% and has retraced about half of its decline from the Feb. 19 highs.
The Fed’s moves, coupled with giant fiscal stimulus measures, helped corporate bonds and equities off their coronavirus-crisis lows. Hopes of a potential coronavirus treatment have also lifted market sentiment along with some states drafting plans for reopening their economies.
However, Gundlach advised investors to be cautious even after the sharp rally in risk assets.
“I would caution investors to be wary of panaceas like this,” he said. “Many people don’t understand the wide-ranging ramifications of the societal shift that’s going on.”
For access to live and exclusive video from CNBC subscribe to CNBC PRO:
https://cnb.cx/2JdMwO7
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
#CNBC TV
Видео 'LQD' corporate bond ETF looks to be the most overvalued bond asset: Jeffrey Gundlach канала CNBC Television
Billionaire hedge fund manager Jeffrey Gundlach said Monday a popular exchange-traded fund is incredibly overvalued given some of the Federal Reserve’s actions to support the economy during coronavirus pandemic.
“The LQD looks to be about the most overvalued asset in the bond market to me,” Gundlach, CEO of Doubleline Capital, told CNBC’s Scott Wapner on “Halftime Report,” referring to the iShares IBoxx $ Investment Grade Corporate Bond ETF (LQD). “These things are up way off their lows.”
The ETF has rallied nearly 23% since hitting a low on March 19. Gundlach also noted the ETF came within 3% of a record after the Fed announced on April 9 it would buy corporate bonds through exchange-traded funds, specifically LQD.
“The Fed action has certainly swooped that up,” he said.
That rally in corporate bonds coincided with a massive surge in equity prices. Since late March, the S&P 500 has soared more than 25% and has retraced about half of its decline from the Feb. 19 highs.
The Fed’s moves, coupled with giant fiscal stimulus measures, helped corporate bonds and equities off their coronavirus-crisis lows. Hopes of a potential coronavirus treatment have also lifted market sentiment along with some states drafting plans for reopening their economies.
However, Gundlach advised investors to be cautious even after the sharp rally in risk assets.
“I would caution investors to be wary of panaceas like this,” he said. “Many people don’t understand the wide-ranging ramifications of the societal shift that’s going on.”
For access to live and exclusive video from CNBC subscribe to CNBC PRO:
https://cnb.cx/2JdMwO7
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
#CNBC TV
Видео 'LQD' corporate bond ETF looks to be the most overvalued bond asset: Jeffrey Gundlach канала CNBC Television
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
U.S. mid-caps are a great diversifier, says John Hancock's Emily RolandRetail investors are joining in on the 'Magnificent 7' hypeOpening Bell, November 4, 2022Nike: Here's why Oppenheimer upgraded the stockBreaking down shares of Hilton, Expedia and Match GroupNow is a time to own growth and sell some, says T. Rowe's Sebastien PageLockheed Martin sees record order volume in 2022 as earnings beat estimatesA renter's experience of the housing market really depends on where they are right now: Igor PopovCNBC's Investing Club on how to manage your portfolio so you stay diversifiedCDK cyberattack hits U.S. auto dealers for third day in a rowCompass CEO: Supply and demand indicators suggest a modest shift towards a homebuyer's marketClean Start: This clean-tech startup transforms carbon emissions into vodkaCalls of the Day: Palo Alto, Tesla and Freeport-McMoranAI trade is at a 'short-term, tactical top', says Cantor Fitzgerald's Eric JohnstonProlonged high rates will be 'corrosive' to economy, says Moody's Mark ZandiVenture capital veteran Alan Patricof: The startup business has never been better than it is nowMoor Insights' Patrick Moorhead talks mega cap AI tradesChart Master: Is a REIT revival incoming?Trade Tracker: Jason Snipe sells FedexThe market is due for a pause, says Freedom Capital's Jay WoodsKnowing how to appraoch a quick run the right way can make you a better investor, says Jim Cramer