Gundlach Takes Longshot Bet on US Debt Revamp With Low Coupons

DoubleLine Capital’s Jeffrey Gundlach is repositioning some of his funds for the longshot possibility that the US government could move to alter its existing debt.

In an interview with Bloomberg Television, Gundlach suggested that the US could, in response to a future recession, swap out bondholders’ higher-coupon Treasuries and replace them with ones with lower interest payments across the maturity curve.