In an investor webcast, Gundlach characterized the selloff in the bond market as a "liquidation cycle" that will end within weeks, once the benchmark 10-year Treasury hits a high of 2.75 percent. In light of this, investors should consider riskier bonds, he said.
"The momentum of higher interest rates is slowing," Gundlach said. "Now is the time to be thinking about taking advantage of the price discounts that exist in some of the risk areas of the bond market," he added.
Here's the full PPT: