Sherman Says: The Dirty Secret in the Bond Market

In the inaugural episode of DoubleLine’s Sherman Says, Deputy CIO Jeffrey Sherman and Strategist Ryan Kimmel are led by Relationship Manager Nick Dalgety through a discussion of the current macro and market landscape. The focus is on persistent inflation pressures driven by energy price volatility, tariffs and elevated services inflation, which continue to challenge the Federal Reserve’s policy path. From an investment perspective, the group emphasizes disciplined positioning in an increasingly complex fixed-income environment, where starting yield and security selection remain critical. As Sherman notes, “The dirty secret in the bond market is that one of the highest Sharpe ratios almost always sits at the front of the curve. You want to be in things that are shorter in nature, higher quality and more analyzable – especially with an unpredictable policy environment.” The team also highlights relative value opportunities and areas where valuations remain more attractive on a historical basis. Ryan Kimmel's BLS Paper : https://doubleline.com/wp-content/uploads/Rethinking-Signals-Beyond-BLS_September-2025.pdf