DoubleLine Deputy CIO Jeffrey Sherman joins Bloomberg’s The Close with Katie Greifeld and Romaine Bostick to discuss inflation, AI-driven debt issuance and the new Federal Reserve task force leadership. Mr. Sherman sees inflation pressures continuing to build on both the manufacturing and services side, with ISM prices paid remaining elevated heading into the next CPI and PCE prints. On the AI capital expenditures buildout, he is direct and draws a parallel to the pandemic-era supply crunch, arguing the near-term inflationary impulse is undeniable: “This is a self-inflicted supply shortage, as everybody’s piling into the same buildout.” On AI debt issuance, Mr. Sherman notes that while Amazon’s latest offering was oversubscribed, appetite was cooler than just four months prior, and longer-dated SpaceX paper has traded poorly. These are early signs the debt market is beginning to differentiate between established hyperscalers and secondary players solely reliant on the AI buildout. He closes with a measured read on the newly named Fed task force leadership, noting the heavy AI and technology background among appointees but cautioning it is still too early to draw firm conclusions about where new Fed Chairman Kevin Warsh’s policy framework ultimately lands.
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.
