‘Bond King’ Jeff Gundlach warns markets are on a ‘collision course’ with higher interest rates

Jeff Gundlach, the veteran fixed-income investor and CIO of DoubleLine Capital, has warned that higher interest rates could cause trouble for investors. Speaking at an event in Manhattan on Thursday, Gundlach said Treasury yields have spiked to nearly two-decade highs but rates have the potential to go much higher, risking a major disruption in markets. He added that if rates really start to go up, that would likely push the US economy into a recession and potentially trigger a wave of corporate failures. Gundlach did not specify how high or how quickly rates would have to rise.

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