Jeffrey Gundlach’s DoubleLine Flexible Income Fund webcast slides.
Investment Grade = Indices rated AAA to BBB? (shown above) are considered to be investment grade. A bond is considered investment grade if its credit rating is BBB? or
higher by Standard & Poor’s or Baa3 by Moody’s. The higher the rating, the more likely the bond is to pay back at par/$100 cents on the dollar. AAA is considered the highest
quality and the lowest degree of risk. They are considered to be stable and dependable.
Below Investment Grade = Also known as “junk bond” (shown above) is a security rated below investment grade having a rating of BBB? or below. These bonds are seen as
having higher default risk or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive. They are less likely to pay
back at par/$100 cents on the dollar.
Credit distribution from the highest available credit rating from any Nationally Recognizes Statistical Rating Organization (S&P, Moodys, and Fitch).
Source: BofA/Merrill Lynch Indices as of December 31, 2014 and July 3, 2015 and for their respective years indicated.
Please see appendix for Index definitions
An investment cannot be made directly in an index.
Jeffrey Gundlach – Fed To Raise Rates?
The Fed is going to raise rates (or, in actuality, make you think it wants to so bad that you think they actually might) in order to signal a strong economy, in order to get people acting like a strong economy, in order to create a strong economy.
Flexible Income Fund Portfolio Composition – By Security Type
Portfolio composition as of June 30, 2015. Subject to change without notice.
Source: DoubleLine Capital LP. Sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
Cash = The value of assets that can be converted into cash immediately. Can include marketable securities, such as government bonds, banker’s acceptances, cash equivalents on balance sheets that may include securities that mature within 90 days.
Government – U.S. treasury securities.
Agency = Mortgage securities whose principal and interest guaranteed by the U.S. Government agency including Fannie Mae (FNMA) or Freddie Mac (FHLMC).
Non?Agency = Residential Mortgages Bond Securities are a type of bond backed by residential mortgages. Non?Agency means they were issued by a private issuer.
CMBS = Commercial Mortgage?Backed Securities. Securitized loans made on commercial rather than residential property.
CLO = Collateralized Mortgage Obligations
See full slides below.