Gundlach Warns Next US Recession Could Trigger Debt Crisis

Gundlach's framing marks a shift in how a prominent bond investor views the US Treasury market's traditional role, suggesting the next downturn could be defined by fiscal strain rather than safe-haven demand. That matters for anyone treating long-duration government debt as portfolio ballast, from pensions to crypto treasuries holding yield-bearing instruments. His mention of Operation Twist or restructuring signals the policy toolkit itself is now part of the debate. Whether long-end yields keep rising into a recession, and whether the Fed or Treasury responds with unconventional measures, is the open question.