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Gundlach: Corporate Bonds Could Be A Repeat Of The Sub-Prime Crisis

FYI: A collapse in the corporate bond market could rival the sub-prime debacle a decade ago, according to Jeffrey Gundlach.

Corporate bonds are not as overvalued as sub-prime mortgage debt was prior to the financial crisis, according to Gundlach. But because the corporate market is so much larger than the sub-prime was, the overall exposure to investors could be of the same scale. Indeed, “We could easily see $400 billion in losses,” he said.
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