A mass-refis idea is slowly emerging through Congress and a financial intellectuals community (for the latest: see the Feb2012 edition of Fortune- an article by Allan Sloan). By its nature the refis, if done, would destroy mortgage-backed securities which are the DBLTX only portfolio. I would be much interesting to know the Gundlach's position on the refis developments and on his plans A or B in case the refis become a reality. Any views/ideas?
I was wondering the same thing. Hopefully, Jeffrey will discuss this on his conference call with investors on 02/14. I always listen to his calls. Your thoughts/question would be a good one to submit to Jeffrey during the call. He does answer many of the questions submitted.
From a recent interview... So where is all of this going? What is a bond manager to do? Jeffrey downplays several other types of bonds (TIPS - no reason to buy at all) and then stands by the "very successful" trade he's had on since at least last year. He continues to believe that non-agency mortgage bonds are the single best place to be.
The non agency mortgage secutity offerings are likely safe, relatively, than are other FI alternatives. The Munis are also attractive, if you buy the nationals,for diversification. see Nuveen nationals. Bonds, aside from treasury offerings are also attractive. I like corporates in the 10/30 range. When inflation comes one wants to be in gold miner stocks.