With the Federal Reserve on a multi-year mission to keep interest rates as low as possible, investors seeking yield moved out on the risk spectrum from investment grade bonds to things like high-yield (or junk) bonds.
This shift made
However, with interest rates surging and bonds all over the world selling off in recent weeks, the opportunity to buy junk bonds might be now.
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Here's their chart:
Bond god Jeffrey Gundlach made a similar argument last week.
"The liquidation cycle appears to have run its course," said Gundlach pointing to junk bonds among other things.
Here's a slide from Gundlach's presentation showing how junk bond market may have inflected from its bottom.
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