Jeffrey Sherman on CNBC Discusses Year-End Bond Allocations

DoubleLine Deputy Chief Investment Officer Jeffrey Sherman on Dec. 11 discusses on CNBC the influences behind range-bound Treasury yields, including inflation moderating but still outside the Federal Reserve’s comfort zone. Speaking with CNBC’s Sara Eisen and Carl Quintanilla, he notes that the markets, having priced in a quarter-point fed funds cut on Dec. 18, will focus over the next 30 days on understanding the policy signals and news coming from the incoming administration of President-elect Donald Trump. While Mr. Sherman says end-of-year portfolio rebalancing after 2024’s large stock gains could cause a bond rally, he sees offsetting risks, including possible inflationary pressures depending on whether Trump draws hard lines on tariffs and immigration. With these crosscurrents in mind, Mr. Sherman describes how investors can construct a fixed income portfolio yielding 5-6% with a mix of Treasury and credit as well as fixed- and floating rate securities. With respect to Treasury debt, he prefers investing inside 10 years on the yield curve.