DoubleLine Deputy CIO Jeffrey Sherman joins Bloomberg’s The Close with Katie Greifeld and Romaine Bostick to discuss the recent U.S. Treasury rally, attributing the front-end move primarily to relief in crude oil prices but cautioning that core inflation still has a problem. The bond market’s sharp reaction to Federal Reserve Chairman Kevin Warsh’s debut press conference reflected a genuine recalibration, according to Mr. Sherman, with the new Fed chairman focused on price stability not political posturing, and Mr. Sherman sees the agency leaning firmly toward a hike rather than a cut. He notes that timing is complicated, with a potential move landing just weeks before the midterm elections, leaving Chairman Warsh likely to remain patient for now at the risk of needing a larger move later. On AI credit, DoubleLine remains significantly underweight, with Mr. Sherman drawing a parallel to the recent SpaceX IPO: short-dated paper is finding plenty of demand, but as the AI buildout requires longer-dated financing, investors will need a clearer revenue and earnings story before stepping in at current valuations.
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.
