In an interview with Barron's published July 1, 2026, Jeffrey Sherman charts a cautious course for fixed income portfolios through a time of economic boom and optimistic corporate underwriting amid building sovereign fiscal imbalances, untamed headline hazards and AI overinvestment risk. DoubleLine, he tells the magazine, is steering prudent passage by seeking yield in a diversified mix of high-grade securities outside the corporate capex boom. This portfolio composition includes collateralized loan obligations (also attractive for their floating-rate mechanism against scenarios of Fed interest-rate hikes), non-Agency residential mortgage-backed securities and asset-backed securities backed by short-term consumer loans. At the time of interview, Mr. Sherman sees no safe on-ramp for risk-averse bondholders onto the AI capex boom. That time probably will come, he says, but after bond prices correct. "Then you can diversify into a sector, and you have a cushion to offset losers. Today that doesn't exist with AI. So, if you want to participate, why not buy the equity so at least you can participate on the upside?" For fixed income portfolios, however, he stays cautious on credit. Even in one of DoubleLine’s high yield mandates, he notes, the portfolio allocates less than 20% to below investment grade.
Jeffrey Sherman, DoubleLine’s Deputy Chief Investment Officer, is a thought leader, portfolio manager and public speaker in the industry. Mr. Sherman is a member of DoubleLine’s Fixed Income and Global Asset Allocation committees, and he serves as lead portfolio manager for the firm’s multi-sector and derivative-based strategies. In his role, Mr. Sherman guides the investment teams in developing top-down macro views and collaborative asset allocation processes throughout a market cycle. Additionally, he is a member of DoubleLine’s Executive Management Committee. In 2018, Money Management Executive named Mr. Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW, where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. Prior to that, he was a statistics and mathematics instructor at the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the USC/CFALA CFA® Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
