DoubleLink Capital CEO Jeffrey Gundlach. CNBC

Co-founder and chief executive officer of DoubleLine Capital, Jeffery Gundlach, says it’s time to shift from riskier, high-yield securities to higher-quality credits, as he sees rougher waters on the horizon. The shift in sentiment comes after DoubleLine’s assets reached a record US$110 billion this year.

Speaking during a phone interview with Bloomberg, Gundlach said that, while taking a more conservative tack would likely mean giving up performance for a period, it is the right time.

“If you’re waiting for the catalyst to show itself, you’re going to be selling at a lower price,” he said. “This is not the time period where you say, ‘I can buy anything and not worry about the risk of it.’ The time to do that was 18 months ago.”

“Volatility is about to go up,” he added. “That’s my highest-conviction trade right now.”

“I don’t see the big drop, unless there’s something out of left field, like some sort of really escalating conflict. I think you’re supposed to be gradualistically moving toward the exits.”

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.