Conventional wisdom holds that bond prices typically fall when interest rates rise due to the inverse relationship between a bond’s price and interest rates. This inverse relationship is known as “duration,” which measures how much the price of a security is affected as interest rates rise or fall. Duration is measured in years, and for every 1% increase or decrease in interest rates, a bond’s price will changeapproximately 1% in the opposite direction for every year of duration. Thus, during a period of rising interest rates, defined as a period where the 10-year U.S. Treasury yield increased over 100 basis points (bps) trough to peak, a bond with a longer duration would fall more in price than a bond with a shorter duration. Also during a period of rising interest rates, floating-rate bank loans have historicallyoutperformed the broader fixed income market due to their shorter duration.
Mr. Cohen joined DoubleLine’s Global Developed Credit (“GDC”) Group in 2012. He is a Portfolio Manager and the Director of the GDC group. He is also a permanent member of the Fixed Income Asset Allocation committee. Prior to DoubleLine, Mr. Cohen was a Senior Credit Analyst at West Gate Horizons Advisors (and its predecessor ING Capital Advisors) where he worked as an Analyst covering bank loans and high yield bonds. Prior to ING, he was an Assistant Vice President in the Asset Management Group of Union Bank where he managed a diversified portfolio of leveraged loans as well as a portfolio of CDO securities. Previous to Union Bank, he was an Associate Director of Corporate and Investment Banking at the Bank of Montreal in its Natural Resources Group. Mr. Cohen holds a BA in Economics from the University of Arizona and an MBA from the University of Southern California. He is a CFA® charterholder.
Mr. Kenney joined DoubleLine's Global Developed Credit Group in 2013 and has been Director of Corporate Research since 2016. Prior to DoubleLine, he worked at Crescent Capital for two years as an Analyst with a focus on high yield bonds and leveraged loans. Mr. Kenney began his career at Nomura Corporate Research and Asset Management where he worked as a High Yield Bond Analyst covering Autos, Paper, Publishing, Food, and Restaurants. Mr. Kenney holds a BA in History, cum laude from Yale University and is a CFA® charterholder.