DoubleLine Portfolio Manager Ken Shinoda shares his reaction to the FOMC meeting and Fed Chair Jerome H. Powell’s press conference on Bloomberg TV’s “The Close,” recorded March 19, 2025. Mr. Shinoda notes that the market’s positive reaction, with stocks gaining and bond yields falling, was due to Chair Powell’s dovish tone. He also discusses the impact of tariffs and the uncertainty they create for businesses and consumers, potentially leading to an economic slowdown. Mr. Shinoda points out that the decision to slow down the Fed’s balance-sheet runoff is tied to concerns about liquidity problems, similar to those seen in 2018. On market preferences, Shinoda expressed optimism about European equities due to their attractive valuations and potential for stimulus, and he suggested that the risks to longer-duration bonds have diminished while advising caution on risky credit, noting widening spreads in the market.
0:00:00 - Market Reaction to FOMC Decision 0:00:34 - Powell's Dovish Tone 0:01:07 - Impact of Tariffs 0:02:03 - Balance Sheet Runoff and Liquidity Concerns 0:02:45 - Market Preferences 0:03:48 - Capital Flows and Foreign Investment 0:04:57 - Bond Market Valuation and Fixed Income
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.
