DoubleLine Portfolio Manager Ken Shinoda joins Bloomberg TV following Federal Reserve Chairman Kevin Warsh’s debut FOMC press conference, calling the performance credible and the message clear: Price stability is the priority. Mr. Shinoda sees the two-year U.S. Treasury’s sharp reaction as an overwind of speculative longs that were positioned for a more dovish Fed chairman, and he wouldn’t be surprised to see it settle back down toward 4%. On the investment side, Mr. Shinoda’s watchword is patience. Credit spreads have ground back to year-to-date tights, the credit curve is flat, and valuations leave little room for error. In a higher but stable rate environment, he likes hugging the front end of the curve with a mix of floating-rate and short-term fixed-rate securities in investment grade credit, where investors can still pick up 100 to 150 basis points over Treasuries. Of Chairman Warsh’s five task forces, Mr. Shinoda expects communications to be tackled first, and he sees the likely scaling back of forward guidance and dot plots as a step in the right direction.
Mr. Shinoda joined DoubleLine at inception in 2009. He is Chairman of the Structured Products Committee and oversees the non-Agency RMBS team specializing in investing in non-Agency mortgage-backed securities, residential whole loans and other mortgage-related opportunities. Mr. Shinoda is co-Portfolio Manager on the Total Return, Opportunistic Income, Income, Opportunistic MBS and Strategic MBS strategies. He is also lead Portfolio Manager overseeing the Mortgage Opportunities private funds. Mr. Shinoda is also a permanent member of the Fixed Income Asset Allocation Committee, as well as, participating in the Global Asset Allocation Committee. In addition, he hosts DoubleLine’s “Channel 11 News” (Twitter @DLineChannel11, dline11@doubleline.com), a webcast series that provides market insights and commentary with peers and industry experts. Prior to DoubleLine, Mr. Shinoda was Vice President at TCW where he worked in portfolio management and trading. He holds a B.S. in Business Administration from the University of Southern California and is a CFA® charterholder.
