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Gundlach: Junk bonds at all-time relative overvaluation levels

Comments (3)
  • DeepValueLover
    , contributor
    Comments (8160) | Send Message
     
    ATM puts in JNK could be Deep Values depending on the expiration.
    12 Feb, 05:21 PM Reply Like
  • John.Ferrara
    , contributor
    Comments (22) | Send Message
     
    I'm not getting back into JNK until I see 7-8% yields again. And there may be some default this year. Energy Future Holdings is filing for bankruptcy this year no word yet on what will happen with their bonds. I know JNK has a .37%-.45% weight.
    12 Feb, 09:05 PM Reply Like
  • djoseph
    , contributor
    Comments (51) | Send Message
     
    The reason I prefer 4.5 for high yield as opposed to 3.75 for Treasuries is interest rate sensitivity. High yield has more equity like behavior and fall off with higher rates is less than for Treasuries. They are like a high dividend stock fund.
    14 Feb, 11:16 AM Reply Like
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