DoubleLine Deputy CIO Jeffrey Sherman joins CNBC’s Closing Bell Overtime after a hotter than expected CPI report sent the bond market on a rough ride. Fed governors had spent the run-up arguing a hike wasn’t needed, and the data blew that up. Sherman says the Fed still needs to hike and reverse last year’s risk management cuts to establish credibility, and that “the bond market has already done the Fed’s job.” He also sees the stress spreading into the financing side of the AI buildout, with some of the more stressed operators already struggling and heavy capital needs likely to weigh on the long end for some time.Mr. Sherman's approach to fixed income is to keep it simple: short duration credit he can analyze, yielding near 6%, with the five to seven year part of the curve for rate exposure. He’s staying cautious on very long-dated bonds tied to the AI buildout, where the financing needs are significant and the payoff depends on the technology working for decades.
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.
