Ken Shinoda on MBS: From Headwinds to Tailwinds

DoubleLine Portfolio Manager Ken Shinoda returns to “Mic’d Up! with ICM,” hosted by Senior Investment Specialist Pete Seyler, for a deep dive into fixed income strategy amid a shifting macroeconomic landscape. Mr. Shinoda shares his outlook on the U.S. Treasury yield curve, noting, “We’re pretty negative on the long bond (and) underweight duration positioning relative to the Bloomberg Aggregate Index.” He discusses the Federal Reserve’s cautious stance on rate cuts, emphasizing the importance of recent inflation data and seasonal spending trends. The conversation also includes the mortgage-backed securities (MBS) market, where Mr. Shinoda highlights improving technicals and renewed bank participation. “The headwinds have turned into tailwinds, and we’re pretty excited about future prospects.” Beyond MBS, he identifies value in securitized credit at the front end of the yield curve, suggesting investors consider locking in yields before potential rate cuts materialize.