Bill Campbell: Fixed Income Is Doing What It Should Be Doing | Bloomberg

DoubleLine’s Bill Campbell, head of the global sovereign and emerging markets team, joins Bloomberg’s The Close to discuss questions about the AI buildout and its impact on the credit market. He says the issue is the underwriting assumptions baked into projected earnings and describes factors creating a circular logic that could become a cyclical headwind for risk markets. After a hot CPI print sent yields up and then back down, he says stocks and bonds behaved as a risk parity portfolio would expect, and he calls fixed income’s value proposition probably the highest in recent memory.

1. Campbell says questions about the AI buildout and its credit-market impact center on the underwriting assumptions baked into projected earnings.
2. He points to factors creating a circular logic that could turn into a cyclical headwind for risk markets.
3. After the hot CPI print sent yields up and then right back down, he says stocks and bonds behaved as a risk parity portfolio would expect, with fixed income doing what it should be doing in a portfolio.
4. With yields where they are, he calls the value proposition for fixed income probably the highest in recent memory and says DoubleLine is focused on higher-quality credit and the belly of the U.S. Treasury curve, while still seeing value in