The Julia La Roche Show · Wednesday, September 16, 2026
Jeffrey Gundlach pointed to an erosion in the weakest sectors of the bond market, specifically triple-C rated bank loans. He reported that these loans are down several percent in price and have seen a total return of about 5-6%, contrasting with higher-rated bank loans that are still up around 4%.
“So, a few months ago, everything was on an all-time tight, even the lowest rated triple Cs. And now you're starting to see erosion in triple Cs.”
“For example, the weakest bond market sector, and we're slicing them very thin, is triple C bank loans, which are down several percent in price and down about 5, 6% in total return.”
“While higher rated bank loans are still doing fine, they're up about 4%.”