92905081 5-8-12 JEG Webcast Deficits Slides Final

7/31/2019 92905081 5-8-12 JEG Webcast Deficits Slides Final

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Deficits

Dont

Matter

LiveWebcasthostedby:

JeffreyGundlach

ChiefExecutiveOfficer

May8,2012

Asof

March

31,

2012,

no

DoubleLine

Funds

owned

any

MasterCard

or

Visa

securities.

BothDoubleLineTotalReturnBondFundandLowDurationFundsowned2%in

AmericanExpress. Fundholdingsaresubjecttochangeandarenot

recommendationstobuyorsellanysecurity.


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FundOfferings

RetailandInstitutionalClass

NoLoadMutualFund

RetailandInstitutionalClass

NoLoadMutualFund

TotalReturnBondFund CoreFixedIncomeFund

Retail Inst.Nshare Ishare

Retail Inst.Nshare Ishare

Ticker DLTNX DBLTX

MinInvestment $2,000 $100,000

Min

IRA

Investment $500 $5,000NetExpenseRatio 0.74% 0.49%

Ticker DLFNX DBLFX

MinInvestment $2,000 $100,000

Min

IRA

Investment $500 $5,000NetExpenseRatio 0.74% 0.49%

TheFundsinvestmentobjectives,risks,chargesandexpensesmustbeconsideredcarefullybeforeinvesting.The

prospectuscontainsthisandotherimportantinformationabouttheFunds,anditmaybeobtainedbycalling1

(877)3546311/1(877)DLINE11,orvisitingwww.doublelinefunds.com.Readitcarefullybeforeinvesting.Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities.

nves men s n sse ac e an or gage ac e ecur es nc u ea ona r s s a nves orss ou eawareo suc ascre r s ,prepaymen r s ,poss e qu yan e au ,aswe as

increasedsusceptibility toadverseeconomicdevelopments.Investmentsinlowerratedandnonratedsecuritiespresentagreater riskoflosstoprincipalandinterestthanhigherratedsecurities.

TheFundinvestsinforeignsecuritieswhichinvolvegreatervolatilityandpolitical,economicandcurrencyrisksanddifferencesinaccountingmethods.

Opinionsexpressedaresubjecttochangeatanytime,arenotforecastsandshouldnotbeconsideredinvestmentadvice.

DoubleLineFunds

are

distributed

by

Quasar

Distributors,

LLC.

WhiletheFundsarenoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails.

PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.Aninvestmentcannotbemadeinanindex.1


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Announcements

WebcastNews

LuzPadilla June12,2012EmergingMarketsFixedIncomeFund

June12,

2012

1:15

pm

PDT/4:15

pm

EDT

LowDurationBondFund

June19,20121:15pmPDT/4:15pmEDT

,MultiAssetGrowthFund

July10,20121:15pmPDT/4:15pmEDT

ToReceivePresentationSlides:

Youcanemail

.

4


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DeficitsDontMatter

LiveWebcasthostedby:

JeffreyGundlach

ChiefExecutiveOfficer

May8,2012

Asof

March

31,

2012,

no

DoubleLine

Funds

owned

any

MasterCard

or

Visa

securities.

BothDoubleLineTotalReturnBondFundandLowDurationFundsowned2%in

AmericanExpress. Fundholdingsaresubjecttochangeandarenot

recommendationstobuyorsellanysecurity.


7/64

TABIGovernmentSpen ng

Rea an,VicePresidentDickChene famousl

declaredin 2002,proveddeficitsdontmatter

May2,

2011


8/64

DebttoGrossDomesticProduct(GDP)

UOBCash

Plus

Credit

Card:

For

Lar er

Livin

250

150

200

100

%

50

0

Source:CIA

World

Factbook.

Includes

public

sector

debt,

not

including

inter

governmental

debt

or

social

security

as

of

December

31,

2011.

GDP=ReferstotheGrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagiven period.

UOB=UnitedOverseasBank

7


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WorldWideDebt

8


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9


11/64

PIIGS10YearSovereignDebtSpreadtoGermanBundJanuary1,2010throughMay7,2012

Access

re t

ar :

Ta est e

Wa t ng

out

o

Want ng

Source:BloombergFinancialServices.

PIIGS10

=Portugal,

Ireland,

Italy,

Greece

and

Spain

10

year

Treasury

Yield

spreads

versus

the

German

Bund

10

Year

Treasury

yield. 10


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CentralBankBalanceSheets

10/31/11

13.20

12/31/08

10.12

2/28/09

11/30/10

10.87

8/31/08

7.23

.

5/31/06

.

Source:Bianco

Research,

LLC,

February

2,

2012

ECB=EuropeanCentralBank11


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EuroZoneUnemploymentUnemployment

American

Ex ress:

Lon

Live

Dreams forUnder25yrsSpain51%

Ireland30%

or uga

Others:

Denmark15%

Cypress29%

Hungry29%

Poland27%Source:http: globaleconomicanalysis.blogspot.com 2012 01 moneysupplyfiguressuggestsitaly.html?utm_source=feedburner&utm_medium

Eurozoneincludes27memberstates:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece,

Hungary,Ireland,Italy,Latvia,Lithuania,Luxembourg,Malta,Netherlands,Poland,Portugal,Romania,Slovakia,Slovenia,Spain,Spain,Swedenand

theUnited

Kingdom.

Unemployment

rates

as

of

November

2011.

Source:UnemploymentUnder25 JohnMauldin,ThoughtsfromtheFrontLine,May5,2012. 12


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EuroZone andPIIGSGDP1Q1998through4Q2011

15%

20%

10%

A)

5%

Yo

Y%Change(

5%

0%

10%

Eurozone Portugal Ireland Italy Greece Spain

Eurozoneincludes27memberstates:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece,Hungary,Ireland,Italy,Latvia,

Lithuania,Luxembourg,Malta,Netherlands,Poland,Portugal,Romania,Slovakia,Slovenia,Spain,Spain,SwedenandtheUnited Kingdom.

PIIGS

=Portugal,

Ireland,

Italy,

Greece

and

Spain.

GDP=ReferstothegrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagivenperiod.

Source:DoubleLineCapital,BloombergFinancialServices.

13


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WorkersPerRetiree

Source:Zerohedge 14


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YearsofSoaringNationalDebt

,

Source: NYTimesTheDangerousNotionThatDebtDoesntMatter,January20,2012

http://www.nytimes.com/imagepages/2012/01/20/opinion/sunday/debt

graphic.html?ref=sunday 15


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U.S.MilitaryDefenseOutlays

Source:US

Office

of

Management

&

Budget

17


19/64

U.S.HealthcareandMedicareOutlays

Source:USOfficeofManagement&Budget

18


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U.S.FoodStampParticipation

Foodstam

ps

Am

ericanson

Millionso

Source:

19


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FederalWorkersvs.PrivateSector

.

Source: 20


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NationalDebtCeilingversusGrossFederalDebt

25

.

.

Visa.AllyouNeed

20

40

2017) FederalDebt

DebtSubjecttoLimit

15

$Trillions

FiscalYear1

Statutorylimitshavebeenreduced5timessince1940

10

(Endof

01 1 ) )

194

194

194

194

195

195

195

196

196

196

197

197

197

197

198

198

198

199

199

199

200

200

200

200

2

012

(

2

015

(

21Source:Office

of

Management

and

Budget,

DoubleLine


23/64

WhoseTaxRateRoseorFell

Changeintotalfederaltaxrate

Whichincludesincome,payroll,estateand

othertaxes forincomegroups1960to

Segment1960AverageOfIncomeTaxRateFor

DistributionEachincomegroup19602004,themostrecentdataavailable2004ratesincludetheBushtaxcuts.The

majorchangesincethenistheObama

stimulus,whichreducedtheoverall

federaltaxratebybetween1and1.5

percentagepointsformanyhouseholds

Source:http://www.nytimes.com/imagepages/2012/04/13/opinion/sunday/0415webleonhardt.html?ref=sundayreview

NewYork

Times

1960

through

2004.

22


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PercentofJobLossesinPostWWIIRecessions

25Source:

http://www.crgraphs.com/2011/10/employmentgraphs.html


27/64

EmploymenttoPopulationRatioDecember1965throughApril2012

66

62

64

atio%

60

to

Population

58

Employmen

54

56

5 7 8 9 1 2 3 5 6 7 9 0 1 3 4 5 7 8 9 1 2 3 5 6 7 9 0 1 3 4 5 7 8 9 1

26Source:

Bureauof

Labor

Statistics,

DoubleLine

Capital.

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr

Aug

Dec

Apr


28/64

CiviliansNotintheLaborForceJanuary1975throughMarch2012

85

90

ns)

80

lyAdjusted

(millio

h2012

70

75

orF

orce,Seasonal

1975

throughMar

65

liansNotintheLa

January

60C

ivi

Source:Bureau

of

Labor

Statistics 27


29/64

TotalU.S.DebtOutstanding

Source:BloombergFinancialServices 28


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InterestonU.S.Debt



32/64

ConsumerPriceIndex(CPI) YearOverYear(YoY)



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TABIIoo ess er cto t e ar et

a s n our a e


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MerrillFixedIncomeIndexReturns

Grey=YTDending5/4/12

Blue=Year2011

3.76%

6.67%

7.57%

Convertibles(VOSO)

8.16%

.

6.93%InternationalEmerging(IGOV)

5.60%

7.51%

1.00%

.

InternationalDeveloped(NOGO)

Corporate(COAO)

6.14%

0.46%

1.49%

Government(G0A0)

Mortgages(MOAO)

33

DataSource:MerrillLynchIndices

Pleasesee

the

Appendix

for

index

definitions.

An

investment

cannot

be

made

directly

in

an

index.


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MerrillFixedIncomeIndexReturns

rey=

en ng

Blue=Year2011

6.12%

1.33%

5.78%BBRatedHighYieldCredit(JOA1)

CCCRatedHighYield(JOA3)

4.72%6.36%BRatedHighYield(JOA2)

7.39%

8.12%

3.95%

.

ARatedCredit(COA3)

a e re

9.11%0.95%AAARatedCredit(COA1)

InvestmentGrade=IndicesratedAAAtoBBB (shownabove)areconsideredtobeinvestmentgrade. AbondisconsideredinvestmentgradeifitscreditratingisBBB of

34

ig er yStan ar Poor sorBaa3 yMoo y s.T e ig ert erating,t emore i e y t e on istopay ac atpar 100cents ont e o ar.AAAisconsi ere t e ig est

qualityand thelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable.

BelowInvestmentGrade=Alsoknownasjunkbond(shownabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas

havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopay

backat

par/$100

cents

on

the

dollar.

Source:MerrillLynchIndices.

Aninvestmentcannotbemadedirectlyinanindex.


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TABIIIHousingandMBSMarketTrends

Source:U.S.CensusBureau


37/64


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BuildingPermits

Source:Bloomberg

Financial

Services 37


39/64

NewHomeSalesAnnualizedRateinthousands

Source:Bloomberg

Financial

Services 38


40/64

NewHomeSalesMonthsSupply

Source:Bloomberg

Financial

Services 39


41/64

ExistingHomeSalesAnnualizedRateinmillions

Source:BloombergFinancialServices40


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43/64

NonAgencyRMBSLossSeverityJanuary31,2005throughMarch31,2012

76.3%80%

90%

Prime

AltA

61.9%

60%

70%

ity

March2012 Subprime

48.6%40%

50%

LossSever

ry

2005throug

20%

30%

Janu

0%

42

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60 or90dayslateinmortgagepayments,oralreadyinforeclosureorREOstatus.

PrimedefinedasFICO>725andLTV725andLTV>=75

Subprimedefined

as

FICO

725andLTV725andLTV>=75

Subprimedefined

as

FICO

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92905081 5-8-12 JEG Webcast Deficits Slides Final

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