Ken Shinoda: The Market Wants Hikes, Not Committees | Bloomberg [tOcNZtyxdy1]
DoubleLine Portfolio Manager Ken Shinoda joins Bloomberg to break down a sharp move in Treasuries following Fed Chair Warsh's press conference, with the 30-year yield hitting its highest level since 2007 and the curve steepening meaningfully. Ken reads it as a dovish surprise, arguing the long bond is punishing the Fed for not taking inflation more seriously, especially with reporters repeatedly pressing Warsh on why he's committed to 2% but not acting on it. He expects that as energy prices and the Middle East conflict continue to linger, the Fed will likely be forced to hike later this year. On credit, Ken points to real cracks forming beneath the surface, with spreads on AI and hyperscaler-adjacent names widening noticeably and one data center-linked issuer trading down sharply since June. He notes even investment grade names like Oracle are trading like double-B credits, a sign the debt market is starting to price in the same doubts that have been weighing on tech equities. On positioning, Ken likes the short end of the curve, remains cautious on the long end given mounting fiscal and defense spending pressures, and continues to keep DoubleLine's exposure to hyperscaler and data center debt deliberately limited, favoring more basic, lower-correlation sectors like agency mortgages and asset-backed securities instead.