DoubleLine Portfolio Manager Ken Shinoda joins Bloomberg to break down a sharp move in Treasuries following Fed Chair Warsh's press conference, with the 30-year yield hitting its highest level since 2007 and the curve steepening meaningfully. Ken reads it as a dovish surprise, arguing the long bond is punishing the Fed for not taking inflation more seriously, especially with reporters repeatedly pressing Warsh on why he's committed to 2% but not acting on it. He expects that as energy prices and the Middle East conflict continue to linger, the Fed will likely be forced to hike later this year.
On credit, Ken points to real cracks forming beneath the surface, with spreads on AI and hyperscaler-adjacent names widening noticeably and one data center-linked issuer trading down sharply since June. He notes even investment grade names like Oracle are trading like double-B credits, a sign the debt market is starting to price in the same doubts that have been weighing on tech equities. On positioning, Ken likes the short end of the curve, remains cautious on the long end given mounting fiscal and defense spending pressures, and continues to keep DoubleLine's exposure to hyperscaler and data center debt deliberately limited, favoring more basic, lower-correlation sectors like agency mortgages and asset-backed securities instead.
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.
