Jeffrey Gundlach (CEO of DoubleLine Capital) is repositioning some of his funds in anticipation of a potential restructuring of US government debt. In an interview with Bloomberg Television, he suggested that the US government might consider swapping higher-coupon Treasuries for lower-coupon ones to reduce interest payments during a future recession. For example, he speculated that the government could unilaterally lower coupon rates from 4% to 1% without changing the maturity of the debt, a strategy he described as 'the ultimate way of kicking the can down the road.' Gundlach warned that such a move would lead to a collapse in bond prices and severely restrict the government's ability to borrow for generations. He acknowledged that while this scenario is a longshot, it is a possibility worth considering, especially if the government faces extreme financial pressures, such as an interest expense of $3 trillion amid rising rates. Treasury Secretary Scott Bessent has also discussed managing the yield curve as a strategy to handle the US debt load, aligning with Gundlach's concerns about the sustainability of current debt levels.