'Bond Kings' Bill Gross and Jeffrey Gundlach hint a credit crunch is looming as surging rates and banking jitters hit lending

• Two billionaire "Bond Kings" seem worried that the banking fiasco will spark a credit crunch.
• Bill Gross warned soaring interest rates have hit banks' financials and made lending riskier.
• Jeffrey Gundlach noted lending to small businesses has tightened to financial-crisis levels.

Bill Gross and Jeffrey Gundlach appear to be bracing for a credit crunch as surging interest rates and banking fears threaten to strangle lending.

In response to inflation hitting 40-year highs, the Federal Reserve has raised rates from nearly zero to upwards of 4.75% since last March. Gross, Pimco's cofounder and the former boss of its flagship Total Return fund, warned in a Tuesday tweet that hiking at that speed and scale inevitably hits banks' finances and increases lending risks.