Jeffrey Gundlach, chief executive officer of Doubleline Capital LP

Patrick T. Fallon | Bloomberg | Getty Images

DoubleLine Capital CEO Jeffrey Gundlach told CNBC’s Scott Wapner in an email that the credit market is holding up so far during Monday’s turbulent trading, but that he expects it to get worse.

“I am concerned. Things have to get worse – you don’t have a move like this end without disorder. It just never happens,” the “Bond King” Gundlach said, according to Wapner, who read portions of the email on “Power Lunch.”

The 10-year Treasury yield hit a record low 0.318% in overnight trading, while the big drop in oil prices raised concern about the high-yield debt market, which includes a lot of bonds from energy companies. 

The prices of riskier bonds did fall on Monday, with the iShares High Yield Government Corporate Bond ETF down 4.9%, but the credit market is still holding up overall, Gundlach said.

“Given that every single market is down big and the Treasury market is up big – given that context the credit market is more orderly than you would expect,” Gundlach said.

The volatile moves in stocks and Treasurys over the last several weeks has led to pressure on the Federal Reserve to cut interest rates. The Fed already lowered its benchmark interest rate by 50 basis points in an emergency cut March 3, but the market is pricing in more cuts in the months ahead.

Gundlach, however, said he thought it might be too soon for the Fed to step in. 

“These calls for more Fed action seem early. The stock market isn’t even down 20% from its all-time high,” Gundlach said.

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