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
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.
