Gundlach's Buy-the-Dip Warning on High-Yield Bonds

The transcript discusses Jeffrey Gundlach's concerns about leveraged loans and high yield bonds, drawing parallels to the 2007-2008 credit crisis. It highlights shifts in market sentiment from late 2018 to early 2019 and Gundlach's advice to focus on companies with strong balance sheets due to high leverage ratios. The discussion also covers the US debt situation, auction demand, and potential implications of government shutdowns on credit ratings.

What was Jeffrey Gundlach's main concern regarding the market in late 2018?

• The increase in oil prices

• The decline in real estate prices

• The fear of missing out on risk assets

• The rise in technology stocks

According to Gundlach, what should investors focus on when choosing companies to invest in?

• Companies with high dividend yields

• Companies with innovative products

• Companies with strong balance sheets

• Companies with high growth potential

What did Gundlach say about the current state of leverage ratios in the corporate bond market?

• They are so high that no companies would be rated AAA

• They are not a concern for investors

• They are irrelevant to investment decisions

• They are at an all-time low

What trend was observed in recent treasury auctions according to the transcript?

• An increase in the bid to cover ratio

• A decrease in the bid to cover ratio

• Stable bid to cover ratios

• Fluctuating bid to cover ratios

What potential risk is associated with the US's growing pile of debt?

• Decreased government spending

• Increased foreign investment

• Higher interest rates

• Limited number of buyers for treasuries