Mergers & Acquisitions

Jeffrey Gundlach's DoubleLine to launch Income Fund -SEC filings

Credit: REUTERS/Brendan McDermid

DoubleLine Capital, run by widely followed investor Jeffrey Gundlach, is planning to launch a new fund that will invest in mortgage-backed securities, other asset-backed securities and collateralized loan obligations, according to Securities and Exchange Commission filings on Wednesday.

By Jennifer Ablan

June 12 (Reuters) - DoubleLine Capital, run by widely followed investor Jeffrey Gundlach, is planning to launch a new fund that will invest in mortgage-backed securities, other asset-backed securities and collateralized loan obligations, according to Securities and Exchange Commission filings on Wednesday.

The Doubleline Income Fund will be overseen by Morris Chen, Andrew Hsu and Ken Shinoda, the filings said. DoubleLine, which oversees more than $130 billion in assets, declined to comment, citing a quiet period.

Investors have become increasingly hungry for yield and income against the backdrop of ultra-low yields capped by central banks around the world.

DoubleLine said the fund may invest in securities of any credit quality and may invest without limit in securities rated below investment-grade - securities rated Ba1 or below by Moody’s and BB+ or below by S&P and Fitch Ratings, Inc. High yield corporate bonds and certain other fixed-income instruments in which the Fund may invest are commonly known as junk bonds.

The filing said: "Although the fund will normally invest principally in mortgage-backed and other asset-backed securities and CLOs, the fund may invest in other debt instruments of any kind."

(Reporting by Jennifer Ablan; editing by Leslie Adler and Sonya Hepinstall)

((jennifer.ablan@thomsonreuters.com; tel 646 223 6297))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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