Here's where Jeffrey Gundlach is investing after the Fed held rates steady

DoubleLine Capital CEO Jeffrey Gundlach says he’s being selective in bonds as the Federal Reserve weighs its next move, after the central bank held the federal funds rate at 3.5% to 3.75% Wednesday. While three policy members dissented in favor of raising rates by 0.25 percentage point, Gundlach argued that reaching the Fed’s 2% inflation goal likely requires “a couple of years.” In his CNBC “Closing Bell” interview, he said credit markets are softening and that he prefers higher-quality exposure, sticking mainly to BBB-rated bonds and avoiding the “C” tier. He’s focused on the two- to seven-year yield curve, not the long end.