Macroeconomist Zoltan Pozsar, a Managing Director in the Investment Strategy and Research department at Credit Suisse, discusses with hosts Jeffrey Sherman and Samuel Lau, among other topics, the possibilities of “ugly versus beautiful” quantitative tightening by the Federal Reserve (13:18); his expectation of scant demand for Treasuries by FX hedge buyers, foreign central banks and domestic bank portfolios once those assets start rolling off the Fed’s balance sheet (15:44); a vulnerability of the U.S. banking system to mobile retail deposits (19:36) and commodity price spikes (21:48); and non-U.S. central banks diversifying part of their forex reserves away from the dollar (36:20). The podcast was recorded April 25, 2022.
In addition to his economic training in academia and market experience on Wall Street, Mr. Pozsar brings deep experience from within the financial and monetary system itself. Before joining Credit Suisse in 2015, he served as a senior adviser to the U.S. Treasury Department, focusing on matters of financial innovation. As part of the response to the global financial crisis and contributions to the resulting policy debate, in August 2008 he joined the Federal Reserve Bank of New York. There he oversaw market intelligence for securitized credit markets and served as point person on market developments for senior Federal Reserve, Treasury and White House officials. He also worked at the International Monetary Fund where he took part in framing the IMF’s position on shadow banking.
Jeffrey Sherman, DoubleLine’s Deputy Chief Investment Officer, is a thought leader, portfolio manager and public speaker in the industry. Mr. Sherman is a member of DoubleLine’s Fixed Income and Global Asset Allocation committees, and he serves as lead portfolio manager for the firm’s multi-sector and derivative-based strategies. In his role, Mr. Sherman guides the investment teams in developing top-down macro views and collaborative asset allocation processes throughout a market cycle. Additionally, he is a member of DoubleLine’s Executive Management Committee. In 2018, Money Management Executive named Mr. Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW, where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. Prior to that, he was a statistics and mathematics instructor at the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the USC/CFALA CFA® Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
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.
