(Changes “Treasuries” to “Treasury” in last paragraph)
By Davide Barbuscia
NEW YORK (Reuters) – Jeffrey Gundlach, the chief executive of investment management company DoubleLine Capital, expects a U.S. recession as soon as this year, he said on Thursday, as higher interest rates pressure U.S. consumers and companies.
Signals of brewing trouble in the U.S. economy such as rising credit card delinquencies and softer retail sales data suggest the possibility of an economic contraction is more imminent than the risk of an inflationary rebound, he said.
“There’s a lot of recessionary signals out there,” he said, speaking at a webinar hosted by David Rosenberg, founder and president of Rosenberg Research. “There’s more of a recessionary feel than an inflationary feel,” he added.
The money manager, often dubbed ‘the bond king’, said he was staying away from the riskiest parts of the corporate debt market such as triple-C rated companies’…
