Night of the Living Bulls

In this month’s Channel 11 episode, DoubleLine Portfolio Manager Ken Shinoda recaps October’s rally and the macroeconomic themes driving it. With the Federal Reserve taking a dovish turn and economic data temporarily off the air – thanks to the government shutdown – Mr. Shinoda leans on the few numbers that are available to make sense of the market. He tracks the 10-year U.S. Treasury yield’s rise back above 4%, a steepening Treasury curve and the U.S. dollar testing resistance while keeping an eye on signs of froth fading in Bitcoin, small-cap stocks and gold. On the fixed income side, Mr. Shinoda highlights where value still exists – Agency MBS, CMBS and other securitized markets – while cautioning on leveraged loans and private credit as stress builds at the margins.