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"Jeff (Gundlach) is highly concerned with one particular bond bubble that is still ongoing...He notes that the typical bank loans trade settles in T-plus 10 (meaning trade date plus ten more days, more than twice as long as a stock trade) and that this will mean an illiquidity catastrophe should demand for these products go the other way. The bank loan complex is not equipped to deal with rapid changes in flows, like the creation-redemption process needed for ETFs as one example. He mentions anecdotally that a hedge fund friend of his is looking to short Eaton Vance, one of the purveyors of these big bank loan investment products."
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"Jeff (Gundlach) is highly concerned with one particular bond bubble that is still ongoing...He notes that the typical bank loans trade settles in T-plus 10 (meaning trade date plus ten more days, more than twice as long as a stock trade) and that this will mean an illiquidity catastrophe should demand for these products go the other way. The bank loan complex is not equipped to deal with rapid changes in flows, like the creation-redemption process needed for ETFs as one example. He mentions anecdotally that a hedge fund friend of his is looking to short Eaton Vance, one of the purveyors of these big bank loan investment products."
source :
thereformedbroker.com/2014/04/13/notes-from-the-doubleline-lunch-with-jeffrey-gundlach-spring-2014/#more-54874