DoubleLine Investment Management- Thu, 05/21/2026 - 16:21

DoubleLine Minutes: Return of the Bond Vigilantes

DoubleLine Portfolio Manager Eric Dhall and Analyst Mark Kimbrough survey a “neck-snapping” week ended May 15 that saw stocks sell off Friday after the S&P 500 marked an all-time high on Thursday. The party crasher came from the fixed income market. Inflation-focused bond vigilantes sent Treasury yields higher by 20 basis points or more from two-year to 30-year tenors across the curve. The Bloomberg Commodity Index edged higher, amid wide dispersion, as energy rallied, copper was flat and precious metals were sold.

Macro news began with a consensus-matching April CPI on Tuesday but was dominated by an April PPI on Wednesday showing broad signs of inflation. Eric Dhall suggests Friday’s fixed income vigilantism amounted to a “delayed reaction” to the week’s earlier inflation news. Eric and Mark note fed funds futures are pricing in a Fed standing pat until July 2027. The May 18-22 week will be a light one for the statistical mills, with the most notable items being an FOMC minutes release, jobs claims and S&P Global manufacturing and services reports.

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DoubleLine Capital LP

DoubleLine has been managing money for insurers since its inception in 2009. The firm's focus on securitized fixed income and risk management positions it well to manage money for insurers. The firm offers an array of fixed income strategies including dedicated ABS, private ABF, CLOs, infrastructure debt, non-QM, commercial and residential loans, multi-sector fixed income and EM. We understand that the needs of each insurer can vary, and our insurance team is focused on providing our clients with unparalleled access to the investment team and creating custom solutions to meet their distinctive objectives. DoubleLine wants to be your fixed income partner.

Paul Schroeder, CFA
Relationship Manager- Insurance
paul.schroeder@doubleline.com
Direct: 213-372-3123 | Main: 813-791-7333

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