Subprime woes aren't over, fund manager warns(ZT)

Subprime woes aren't over, fund manager warns

Bond market at a crossroads, TCW's Gundlach says

 

By Murray Coleman & Jonathan Burton, MarketWatch

Last Update: 8:04 PM ET Jun 27, 2007

 

CHICAGO(MarketWatch) -- An end isn't anywhere in sight to the meltdown insubprime mortgage markets, the chief investment officer at LosAngeles-based TCW Group Inc. warned a gathering of investmentprofessionals on Wednesday.

In his keynote address and an interview to kickoff the 19th annualMorningstar Investment Conference here, Jeffrey Gundlach pointed tocontinued pressure on subprime lenders.

"The subprime market is a total unmitigated disaster and it's going toget worse," Gundlach told money managers and financial advisers.

"The delinquency rate is still climbing," he added. "At the same time,the ability of people to refinance is also going down. It's just not avery attractive situation."