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DoubleLine’s Sherman Is ‘Not Touching’ High-Yield Bonds Just Yet

  • Deputy CIO says comparable yields can be found in high-grade
  • If adding junk bonds, do at the expense of equities: Sherman
Bloomberg business news
DoubleLine Not Touching High Yield Now, Deputy CIO Says

Almost double-digit yields on junk-rated debt aren’t enticing to DoubleLine Capital’s Jeffrey Sherman. 

While the belief that the Federal Reserve may slow down the pace of its interest-rate hikes is boosting risk assets like junk bonds, it’s premature to think that the central bank will meaningfully dial back, according to the $98 billion asset manager’s deputy chief investment officer. The average US junk bond yields just above 9%, outside of a pandemic-fueled spike in 2020, that’s the loftiest level since early 2016, Bloomberg data show.