Jeff Mayberry and Samuel Lau start review a somewhat volatile and negative 2024 debut for bonds (0:47) and fixed income (2:13) with commodities (3:55) treading water with a slight rise of 10 basis points on the Bloomberg Commodity Index for the abbreviated week ended Jan. 5. For the week’s macro news (5:35), Jeff reviewed readings on the ISM manufacturing and services indexes, labor market reports and the release of the Dec. 13, 2023, meeting minutes of the Federal Open Market Committee. For the Topic of the Week (10:31), Jeff and Sam share their thoughts on the Treasury basis trade and recent blips in the Secured Overnight Financing Rate (SOFR). Barring a change of pace in balance sheet reduction by the Federal Reserve, Jeff expects more blips in SOFR rates as quantitative tightening continues, further reducing excess reserves in the banking system. On their radar for macro prints Jan. 8-12 (25:08) are releases of the consumer and producer price indexes for December and jobless claims.
Mr. Mayberry joined DoubleLine in 2009. He is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives‐based and multi‐asset strategies. Mr. Mayberry is a Strategist on the Fixed Income Asset Allocation Committee and a contributing member on our Global Asset Allocation and Macro committees. He also co-hosts DoubleLine’s weekly Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcast. Prior to DoubleLine, Mr. Mayberry was a Senior Vice President at TCW for nine years within the Mortgage Group, where he specialized in portfolio and fund monitoring and analytics. He holds a B.S. in Engineering from Harvey Mudd College and an M.S. in Financial Engineering from the Peter F. Drucker Graduate School of Management at Claremont Graduate University.
Mr. Lau joined DoubleLine in 2009. He is a Strategist on the Fixed Income Asset Allocation (FIAA) Committee and a contributing member on the Global Asset Allocation and Macro Committees. Mr. Lau is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives-based and multi-asset strategies, including DoubleLine's Shiller Enhanced CAPE®, Shiller Enhanced International CAPE®, Real Estate and Income, and Multi-Asset Trend strategies. He also co-hosts the Sherman Show (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) and Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcasts. Prior to DoubleLine, Mr. Lau was a Vice President at TCW where he worked under Jeffrey Gundlach as a Research Analyst in the Mortgage Group. He holds a B.S. from the University of Wisconsin, Madison and an MBA from the Marshall School of Business at the University of Southern California.