DoubleLine’s Jeff Mayberry and Samuel Lau in their review of the Aug. 2-6 market activity, spotlight higher equities led by financials with consumer staples the one sector ending the market week in the red (5:25). Higher interest rates, with the 10-year Treasury yield ending the week near the week high (5:50), left all the components of the investment-grade Bloomberg Barclays US Aggregate Bond Index as well as high yield bonds in the red. On the macroeconomic front, the co-hosts zero in on significant healing in the U.S. labor market as evidenced by nonfarm payrolls and unemployment and underemployment rates (15:26). For the Question of the Week, Jeff and Sam cover the history and evolution of the federal debt ceiling (19:53), along the way noting how Janet Yellen flip-flopped (27:50) on the debt ceiling. On Aug. 2, Treasury Secretary Yellen warned of “extraordinary measures” if Congress failed to act on the debt ceiling and “protect the full faith and credit” of the U.S. government. Back in 2011, Jeff recalls, then-Vice Fed Chair Yellen said political jockeying over the debt ceiling “usually just turns out to be theater.”
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.