Jeffrey Gundlach, founder of US asset manager DoubleLine Capital, is sticking to his strategy despite concerns the US Federal Reserve may be looking to cool its quantitative easing programme.
Bond purchases by the central bank, that currently amount to $85 billion a month, will not be stopped anytime soon, Los Angeles-based Gundlach told Citywire Global on Thursday.
'My views have not changed. I believe quantitative easing will continue not for months but years, and the policy will be altered only after it creates unpleasant outcomes,' said Gundlach.
Gundlach, who runs DoubleLine's $40 billion total return bond strategy, recently told Citywire Global he was buying longer term mortgage securities on the expectation interest rates will remain low.
The Federal Reserve's January minutes, released on Wednesday, sent stock prices down sharply as it highlighted a division between central bankers over the bond buying programme that is aimed to keep interest rates low in order to spur economic growth.
'I am not shocked at all by the Fed minutes. Ben Bernanke is in charge at the Fed. Other voices probing the merits of QE programmes are to be expected given the fully experimental nature of Mr Bernanke's policies,' said Gundlach.
An in-depth interview with Jeffrey Gundlach will feature in the upcoming March edition of Citywire Global magazine.