After reviewing equities (3:03), fixed income (3:44), commodities (6:50) and macro news (11:25) for the abbreviated market week ended April 6, Jeff Mayberry and Samuel Lau discuss the basics of interest rate risk (16:23), aka duration, including its impacts on investor portfolios as well as banks. They also delve into the relationship between coupon levels and duration, the types of securities to use to benefit from falling yields in an anticipation of recession, and the use of longer duration government securities to offset credit risk in a portfolio. Among macro data points in the days ahead (26:50), Jeff and Sam cite payrolls, unemployment rate and labor participation rate for March due Friday April 7; Federal Open Market Committee minutes and Consumer Price Index for March, Wednesday April 12; Producer Price Index, Thursday April 13; and University of Michigan consumer inflation expectations survey and retail sales, Friday April 14.
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 (FIAA) 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.