Jeffrey Sherman, Deputy CIO of DoubleLine, discusses the current state of the bond market in an interview on CNBC “Money Movers” with Sarah Eisen and Carl Quintanilla. He highlights the recent weakness in credit spreads in corporate bonds and the impact of tariff talk on risk assets. Mr. Sherman emphasizes the importance of finding high-quality investments in the current market environment, stating, “What really one needs to focus on right now is just finding quality still in the marketplace.” He also touches on the stagflation narrative, tight labor market and potential for continued volatility due to inflation. Mr. Sherman concludes by discussing the convergence of yields between German bunds and U.S. Treasuries and the implications for the dollar and euro.
Highlights:
00:00 Introduction and bond market outlook, recent movements in the front of the Treasury curve and credit spreads 00:39 Impact of tariff talks on risk assets, the state of ISM Services PMI and inflation concerns 01:19 High valuation, finding quality investments and stagflation narrative 02:05 Inflation, Fed’s rate cut path and economic activity in services versus manufacturing 02:58 Upcoming economic data and market expectations 03:35 German yields, defense spending and convergence of yields between German bunds and Treasuries
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.
