Jeffrey Gundlach on Private Credit's Wild West and a U.S. Debt Tail Risk | Bloomberg TV

DoubleLine CEO and CIO Jeffrey Gundlach joins Bloomberg’s The Close live from DoubleLine’s L.A. offices, opening with a stark warning on private credit. Gundlach argues that the trust problem is accelerating — drawing a vivid Wild West parallel to describe how an influx of fast money overwhelms a previously stable market — and expects redemption requests from interval funds to surge around the Ides of June. He dismisses the industry's claim that illiquidity is a feature, calling the practice "laundered volatility."

The conversation turns to U.S. fiscal dynamics, where Gundlach warns that long rates are heading higher regardless of whether there is a recession. He raises the highly unlikely but thought-provoking scenario of a Treasury debt restructuring as a tail risk worth understanding as the fiscal trajectory continues to deteriorate. He closes with his current positioning views, maintaining roughly 20% in cash and a meaningful allocation to commodities.