With China systematically reducing its holdings of U.S. Treasury securities, the federal government and Treasury market can ill afford a wave of other large foreign sellers of U.S. debt, warns Bill Campbell, Portfolio Manager, Global Sovereign Debt, at DoubleLine Capital. The risk of such exits from the Treasury market, he writes in a new report, bears close vigilance by sovereign-debt allocators amid today’s geopolitical tensions. In Mr. Campbell’s view, Danish pension fund AkademikerPension’s decision, announced Jan. 20, to sell out of Treasuries by the end of the month is inconsequential in itself to this $30 trillion fixed income sector. However, the Danish example, he warns, “could presage similar disinvestment across the international institutional investor community …. Investors already are growing concerned about political and fiscal risk in developed market sovereign debt, as I warned in December and which became evident in the selloff of Japanese government bonds on Tuesday [Jan. 20]. Trade and geopolitical disputes can add catalysts for investors to act on these fundamental concerns.”
Mr. Campbell joined DoubleLine in 2013. He oversees the firm’s Global Sovereign Debt team and serves as a Portfolio Manager of the DoubleLine Emerging Markets Local Currency and Global Bond strategies. He is a permanent member of the Fixed Income Asset Allocation Committee. Prior to DoubleLine, Mr. Campbell worked for Peridiem Global Investors as a Global Fixed Income Research Analyst and Portfolio Manager. Prior to that, he was with Nuveen Investment Management Co., first as a Quantitative Analyst in the Risk Management and Portfolio Construction Group then as a Vice President in the Taxable Fixed Income Group. Mr. Campbell also worked at John Hancock Financial as an Investment Analyst. He holds a B.S. in Business Economics and International Business, as well as a B.A. in English, from Pennsylvania State University. Mr. Campbell holds an M.A. in Mathematics, with a focus on Mathematical Finance, from Boston University.
