Jeffrey Sherman: The Bond Market is in Charge | CNBC

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DoubleLine Deputy CIO Jeffrey Sherman joins CNBC’s Closing Bell Overtime after a hotter than expected CPI report sent the bond market on a rough ride. Fed governors had spent the run-up arguing a hike wasn’t needed, and the data blew that up. Sherman says the Fed still needs to hike and reverse last year’s risk management cuts to establish credibility, and that “the bond market has already done the Fed’s job.” He also sees the stress spreading into the financing side of the AI buildout, with some of the more stressed operators already struggling and heavy capital needs likely to weigh on the long end for some time.

Mr. Sherman's approach to fixed income is to keep it simple: short duration credit he can analyze, yielding near 6%, with the five to seven year part of the curve for rate exposure. He’s staying cautious on very long-dated bonds tied to the AI buildout, where the financing needs are significant and the payoff depends on the technology working for decades.

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DoubleLine Capital LP

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DoubleLine has been managing money for insurers since its inception in 2009. The firm's focus on securitized fixed income and risk management positions it well to manage money for insurers. The firm offers an array of fixed income strategies including dedicated ABS, private ABF, CLOs, infrastructure debt, non-QM, commercial and residential loans, multi-sector fixed income and EM. We understand that the needs of each insurer can vary, and our insurance team is focused on providing our clients with unparalleled access to the investment team and creating custom solutions to meet their distinctive objectives. DoubleLine wants to be your fixed income partner.
 

Paul Schroeder, CFA   
Relationship Manager- Insurance  
paul.schroeder@doubleline.com
Direct: 213-372-3123
Main: 813-791-7333
 

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