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Guy LeBas, industry influencer, calls out what he describes as a misleading narrative being circulated by Gundlach. LeBas remarks that this is merely a move to generate demand for assets already owned and to create liquidity, pushing lower yield bonds to higher prices.
He cites multiple calls received on the subject and dismisses the underlying story as baseless.
LeBas has previously highlighted a disconnect between elevated systemic credit risk perceptions and low investment grade credit spreads. In a separate report, MacroScope noted a spike in month-end rebalancing needs across equities and U.S. rates markets. The recent remarks add to ongoing market commentary on recent positioning and liquidity flows.