Gundlach Takes Longshot Bet in Case of US Debt Restructuring

DoubleLine Capital’s Jeffrey Gundlach is repositioning some of his funds for the extreme scenario that the US government could choose to restructure its debt in response to a potential future recession.

In an interview with Bloomberg Television, Gundlach suggested that, while unlikely, the US may at some point opt to swap out bondholders’ higher-coupon Treasuries and replace them with ones with lower interest payments across the maturity curve.