Gonak: The next US recession may lead to a financial crisis, which will lead to the soaring yield of treasury bond

DoubleLine Capital CEO Gunak warned that the next US economic recession may lead to a debt crisis, driving the long-term treasury bond bond yield soaring. Gunlak is focusing on low duration assets to protect DoubleLine Capital's funds from the impact of rising interest rates. Gunlak believes that the US government may increase policy intervention, including the Federal Reserve repeating Operation Twist or conducting debt restructuring. Gunlak stated that the budget deficit will reach 12% of GDP, generating approximately $3 trillion in interest expenses annually, which is unsustainable.