Jeffery Gundlach of DoubleLine Capital on a recession and the corporate bond market.

Jeffery Gundlach of DoubleLine Capital on a recession and the corporate bond market.

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Hello. Aaron Weinman here. The “Bonus King” has spoken! Jeffrey Gundlach, CEO of DoubleLine Capital, is convinced that the recession is looming in 2023.

But not everything is pessimism. He likes the look of lower-rated investment-grade securities, specifically those rated triple B. He also likes the double-B bond, which is the top rung of the high-yield market.

These are companies, or sometimes countries, securities that outperform the highest-rated borrower like Google or Apple, but they carry risks.

For Gundlach, that risk is worth it, especially with rising short-term interest rates. Borrowers living in the triple or double B slots will have to make more expensive interest payments in the coming months.

Insider’s Hayley Cuccinello heard the billionaire outspoken at an event in Huntington Beach, California. Check out his story here.

And, happy Friday, readers. It’s banker of the week time!


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Jeffrey Gundlach, dressed in a lime green shirt and tan pants, speaks at the Future Proof festival in Huntington Beach, California.

Billionaire “bond guy” Jeffrey Gundlach

Courtesy of Advisor Circle


1. Jeffrey Gundlach of DoubleLine Capital likes bonds. Despite believing that a recession is just around the corner, not all is doom and gloom for the billionaire.

He shared his playbook for the bond market and believes the sweet spot for double-digit growth for investors is between the lines of the investment-grade and sub-investment-grade markets.

Gundlach recommended buying securities rated double B (the highest level of non-investment grade) and triple B (the lowest level of investment grade).

He acknowledged that there is risk in this strategy, but not enough to avoid gobbling up these stocks. He said this move could earn an investor up to a 12% return.

That is helped by a rising interest rate environment. Borrowers’ bond and loan repayments will only get more expensive for those with floating-rate repayment schedules.

Gundlach spoke at the Future Proof Festival. Read the full story here.


In other news:

In this photo illustration the Adobe Inc. logo is seen displayed on a smartphone screen.


SOPA Images/Contributor/Getty Images



2. Adobe agreed to buy Figma for $20 billion. Investors believed that Adobe overpaid for Figma and the company’s market value plummeted by more than $30 billion. Allen and Company advised Adobe, and Wachtell, Lipton, Rosen & Katz acted as legal counsel to the Photoshop maker. The deal is also one of the largest ever for a venture-backed startup. Early investors like Greylock and Kleiner Perkins stand to gain big.

3. The Ethereum merger has finally arrived. The merger will transition the Ethereum blockchain from a proof-of-work verification system to a proof-of-stake system. Fifteen crypto CEOs and founders share their thoughts on what this means for the digital asset space.

4. Apollo is turning directly to bond investors to finance mergers and acquisitions as banks de-risk private equity firm takeovers, Bloomberg reported. Barclays and Deutsche Bank are selling bonds for Apollo-backed Lottomatica on a best efforts basis. That means they are raising the financing from investors without underwriting the debt on their own balance sheets.

5. Coming soon from Walmart: checking accounts. The world’s largest retailer is expected to launch digital bank accounts for its employees and customers, according to Bloomberg.

6. Student loan startup CommonBond is quietly going out of business. The pandemic interest and payment pause hit its core refinancing business massively.

7. NextEra Energy sold $2 billion of equity units to Citi, Goldman Sachs, and Mizuho. The deal, which is priced at $50 per unit, is one of the largest transactions in equity capital markets in recent months, where deal flow has slowed to a trickle.

8. Companies like Zoom and Roku are giving away more shares to attract talent, but that could dilute existing shareholders. Insider has compiled a chart highlighting some tech companies with the most expensive stock compensation.

9. The ultra-rich are taking the concept of remote work to the next level. The demand for private islands has skyrocketed since the start of the pandemic. Here are four private islands for sale in the Bahamas.


graham weaver

Graham Weaver, Founder and CEO of Alpine Investors

alpine inverters


10. And here’s our Friday banker of the week. Meet Graham Weaver, founder and CEO of Alpine Investors, a private equity firm focused on software and services companies.

Weaver pitched the idea for Alpine in a Stanford Business School dorm room in 2001. He started by borrowing against his credit card to invest in companies. Today, the company manages $8 billion in assets.

Check out the full story and Weaver’s love of blogging and TikTok here.


Curated by Aaron Weinman in New York. spikes? Email aweinman@insider.com or tweet @aaronw11.



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