Jeffrey Gundlach swaps Treasuries for lower coupons ahead of possible debt restructuring
Updated
Updated · MarketWatch · May 8
Jeffrey Gundlach swaps Treasuries for lower coupons ahead of possible debt restructuring
13 articles · Updated · MarketWatch · May 8
The DoubleLine chief said he began the shift two years ago, cutting long-bucket coupons from 4.75% to 1.5% while keeping maturities unchanged.
He argues Washington relied too heavily on short-term issuance, missed locking in 1% long-term borrowing, and could face sharply higher interest costs if recession and rising long yields coincide.
Gundlach said restructuring the roughly $30 trillion Treasury stock to lower coupons could slash interest expense but anger bondholders and damage US market access; Treasury refunding plans still keep long-bond sizes steady.
If the U.S. government alters its debt, what does this mean for the future of retirement and the American dollar?
With public debt and private credit flashing red, where can investors find genuine safe havens beyond traditional government bonds?
As hedge funds replace banks in the Treasury market, is a systemic crisis now inevitable without fundamental regulatory reform?