7 views on the market from Jeffrey Gundlach
Bullish on nonagency market
The mortgage sector is "pretty dicey" in terms of refinancing risk, according to Gundlach, and he has reduced prepayment exposure across DoubleLine portfolios. While he isn't predicting price appreciation in the agency market, Gundlach said that the nonagency sector could deliver double-digit returns this year. “The best reason to be bullish on parts of the nonagency market is it’s quite likely that with housing [prices] improving in some of the areas that underlie these securities . . . refinancing is going to start becoming a positive benefit to those assets," Gundlach said.
Source: Litman Gregory