Jeffrey Gundlach Says Private Credit's 'Troubled Assets' Trade Is Full Of Contradictions - Apollo Global

Jeffrey Gundlach cast doubt on the private credit industry's latest trading activity this week, questioning whether managers dumping "troubled assets" are really uncovering bargains — or simply reshuffling risk.

Responding to a Bloomberg story, the DoubleLine Capital CEO questioned how private credit managers are "increasingly trading in and out of loans to offload troubled assets and pursue bargains.”

He wrote: "Bloomberg: ‘Private credit managers are increasingly turning to trading in and out of loans to dump troubled assets and hunt for bargains.' But ‘troubled assets' have recently been touted as ‘the opportunity.' And what ‘bargains' are out there that are not ‘troubled?'"

Apollo Global (NYSE:APO) and KKR & Co. (NYSE:KKR) are two prime examples of companies that have been in the news recently for buying and selling loans related to private credit.

Something went wrong.