DoubleLine Portfolio Manager Ken Shinoda recaps a surprisingly strong May across global equities and credit markets. Despite ongoing macro uncertainty, easing tariff concerns helped lift business and consumer sentiment, and consumer spending proved resilient. Mr. Shinoda breaks down a rebound in tech stocks, a divergence between market-cap- and equal-weighted stock indices and continued strength in international equities, particularly Europe and emerging markets. He also highlights the shifting narrative around the U.S. dollar and the impact of higher rates on small caps and housing.
On the fixed income side, Mr. Shinoda discusses steepening U.S. Treasury yields, the relative value in the belly of the Treasury curve and the strong performance of credit, especially in securitized sectors and lower-rated loans. He explains how spreads have compressed from April’s wides, why Agency mortgages still look cheap, and how core bond portfolios are earning their carry. With Federal Reserve rate cuts likely on hold and inflation expectations stabilizing, Mr. Shinoda outlines where DoubleLine sees opportunity heading into the summer.
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.
