The third quarter of 2024 marked a reversal from the first half of the year, as longer-duration and higher-rated sectors outperformed shorter-duration and lower-rated cohorts, driven primarily by falling U.S. Treasury rates. (Figure 1) Strong returns for Treasuries, Agency mortgage-backed securities (MBS) and investment grade (IG) corporate bonds contributed to a 5.20% return for the Bloomberg US Aggregate Bond Index (the “Agg”). The long-anticipated start of the interest-rate cutting cycle by the Federal Reserve in September contributed to lower Treasury rates across tenors in the period, as the two- and 10-year Treasury yields declined 111 basis points (bps) and 62 bps, respectively, resulting in a yield differential between the two notes of positive 14 bps at quarter-end. Securitized and corporate credit spreads broadly tightened, and credit curves flattened.
Mr. Gundlach is CEO of DoubleLine. In 2011, he appeared on the cover of Barron's as "The New Bond King." In 2013, Institutional Investor named him "Money Manager of the Year." In 2012, 2015 and 2016, he was named one of "The Fifty Most Influential" in Bloomberg Markets. In 2017, he was inducted into the FIASI Fixed Income Hall of Fame. Mr. Gundlach is a summa cum laude graduate of Dartmouth College, with degrees in Mathematics and Philosophy.
As DoubleLine’s Deputy Chief Investment Officer, Jeffrey Sherman oversees and administers DoubleLine’s Investment Management sub-committee coordinating and implementing policies and processes across the investment teams. He also serves as lead portfolio manager for multi-sector and derivative-based strategies. Mr. Sherman is a member of DoubleLine’s Executive Management and Fixed Income Asset Allocation Committees. He can be heard regularly on his podcast “The Sherman Show” (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) where he interviews distinguished guests, giving listeners insight into DoubleLine’s current views. In 2018, Money Management Executive named Jeffrey 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. He was a statistics and mathematics instructor at both the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the CFA LA/USC 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 the Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
