"Investment Advisor of the 'New Bond King': Prepare for Rate Cuts from the 'Shadow Fed'"

"New Bond King" Jeffrey Gundlach's DoubleLine Capital Deputy Chief Investment Officer Jeffrey Sherman's bond trades include buying two-year US Treasury bonds and shorting ten-year US Treasury bonds in order to hedge the risk of President Trump firing the Federal Reserve chairman. The trade is based on a bet that the yield curve will steepen, and it gained attention again after reports that Trump is considering replacing Chairman Powell. Sherman said that the concept of a "shadow Federal Reserve" will help with this trade, as the market will closely examine Powell's tenure and expect the new chairman to cut interest rates immediately upon taking office.