DoubleLine Deputy CIO Jeffrey Sherman presents a macroeconomic analysis of the U.S. labor market’s current inflection point and its implications for fixed income strategy. Mr. Sherman reviews gross domestic product growth, consumer spending resilience and the structural impact of government fiscal policy, focusing on elevated deficits, debt servicing costs and an evolving balance between labor supply and demand. He highlights sector-specific employment trends, wage growth and the regressive effects of inflation and tariffs, emphasizing how these factors interact with monetary policy and broader economic stability.
Mr. Sherman also examines the influence of Federal Reserve actions and global debt dynamics on interest rates, yield curves and credit spreads. The webcast includes a technical assessment of inflation drivers, market volatility, and the performance of Agency mortgages, corporate bonds and emerging markets debt. By synthesizing macroeconomic data and labor market indicators, Mr. Sherman frames the current environment for fixed income investors, interpreting recession risk signals, wage inflation and the effects of policy uncertainty on market positioning.
00:00 Introduction and Economic Overview
03:40 Fiscal Policy and Government Debt
06:02 Interest Rates and Debt Markets
09:36 Labor Market Confidence
12:05 Manufacturing and Services Trends
14:37 Inflation and Wage Growth
16:34 Labor Supply vs. Demand
19:17 Sectoral Employment and Unemployment Claims
28:05 Fixed Income Market Performance
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.
