DoubleLine Deputy Chief Investment Officer Jeffrey Sherman on Dec. 11 discusses on CNBC the influences behind range-bound Treasury yields, including inflation moderating but still outside the Federal Reserve’s comfort zone. Speaking with CNBC’s Sara Eisen and Carl Quintanilla, he notes that the markets, having priced in a quarter-point fed funds cut on Dec. 18, will focus over the next 30 days on understanding the policy signals and news coming from the incoming administration of President-elect Donald Trump. While Mr. Sherman says end-of-year portfolio rebalancing after 2024’s large stock gains could cause a bond rally, he sees offsetting risks, including possible inflationary pressures depending on whether Trump draws hard lines on tariffs and immigration. With these crosscurrents in mind, Mr. Sherman describes how investors can construct a fixed income portfolio yielding 5-6% with a mix of Treasury and credit as well as fixed- and floating rate securities. With respect to Treasury debt, he prefers investing inside 10 years on the yield curve.
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.
