In retrospect, the incredible volume of cov-lite loans -- loans with few strings attached -- was one of the surest signs of a credit bubble. That obviously ended in tears.
Anyway, they're back.
In his latest presentation, Jeff Gundlach takes a look at cov-lite volume and notes that through just one quarter of 2011, we've already surpassed 2010's level of cov-lite. We're already on pace for one of the highest years ever.
With the Fed keeping rates incredibly low, and options for yield not widespread, it's no wonder his presentation was called Deja Vu All Over Again. Read »
