Jeffrey Sherman: The Bond Market Is in Charge | CNBC
For wealth professionals focused on fixed income, the item offers a manager’s read on Fed credibility, curve positioning and credit duration after an inflation surprise. It also connects rates and financing conditions to the AI buildout, a theme that can affect long-dated bond exposure.
Summary
By the bonds & fixed income deskDoubleLine Deputy CIO Jeffrey Sherman joins CNBC’s Closing Bell Overtime after a hotter-than-expected CPI report sent the bond market on a rough ride. He argues the Fed still needs to hike and reverse last year’s risk-management cuts to establish credibility, and says the bond market has already done the Fed’s job. He also discusses stress spreading into the financing side of the AI buildout and heavy capital needs weighing on the long end.
- CPI came in hotter than expected and sent the bond market on a rough ride.
- Sherman says the Fed still needs to hike and reverse last year’s risk-management cuts to establish credibility.
- He says “the bond market has already done the Fed’s job.”
- He describes keeping fixed income simple with short-duration credit yielding near 6% and five-to-seven-year curve exposure for rates.
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