Gyroscopic Investing

Bass also weighed in on Puerto Rico , which has a debt crisis of its own that has it on the financial brink.

"You look at their finances and you say, 'I have no clue how this can continue to exist for very much longer.'"

Despite other municipal bond investors' faith in the commonwealth's debt and Moody's reaffirmation of a rating just above investment grade, "Clearly they're completely junk," he said.

"When Puerto Rico has its crisis, which it looks like we're on the precipice of, the write-downs have to be 80-90 percent on these bonds," he said.