Channel 11: Tranquilo

Ken Shinoda, Portfolio Manager at DoubleLine Capital and Chairman of the firm’s Structured Products Committee, reviews April performance in the markets and macro activity in the latest episode of Channel 11, “Tranquilo.” The name references the calming effect that the dovish tone struck at the FOMC meeting at the end of April seems to be having on the markets at the beginning of May. But in the April rundown (1:21), Mr. Shinoda recounts the bloodbath in longer-duration paper in fixed income, noting, “Only if you were floating rate or very short duration did you withstand the move in April.” A return visit to equities, March’s “Land of Gains,” finds a deflated S&P 500 and struggling small caps amid negative sentiment for and negative performance of risk assets (2:30). The April review also includes a look at commodities and Bitcoin (4:42).

In this month’s What Looks Cheap?, Agency mortgages stand head and shoulders above the crowd (6:12). Mr. Shinoda concludes the episode with a discussion of economic and inflation factors (9:44), and he provides support for the base case of one cut to the federal funds rate, which is likely to come toward the end of the year.