An Alternative to Long Duration U.S. Treasuries
DoubleLine Publishes Paper on DoubleLine Long Duration Total Return Bond Fund
LOS ANGELES, July 11, 2019 /PRNewswire/ -- Given their performance during U.S. stock market drawdowns, long-duration Agency collateralized mortgage obligations (Agency CMOs) merit consideration as an alternative or complement to investor allocations to long-duration U.S. Treasuries, a traditional perceived "safe haven" in risk-off markets, according to a new paper by the investment team at DoubleLine Capital LP. The paper also explores how DoubleLine actively manages this subsector of the mortgage-backed securities (MBS) sector.
The paper, titled "DoubleLine Long Duration Total Return Bond Fund: An Alternative to Long Duration U.S. Treasuries," can be downloaded here:
The DoubleLine Long Duration Total Return Bond Fund ("the Fund") is an actively managed approach to Agency MBS and can serve as an alternative or complement to Treasuries, while potentially offering a more attractive yield-to-duration profile. The paper covers three topics: (1) what are Agency MBS, (2) the historical returns of Agency MBS and long-duration CMOs versus U.S. Treasuries during equity drawdowns and (3) the performance of the Fund during equity drawdowns since its inception. The returns of the Fund were compared with the returns of the Bloomberg Barclays U.S. Long Government/Credit Index and the Bloomberg Barclays U.S. Treasury Index.
Terms and Definitions
Bloomberg Barclays U.S. Long Government/Credit Index includes publicly issued U.S. Treasury debt, U.S. government agency debt, taxable debt issued by U.S. states and territories and their political subdivisions, debt issued by U.S. and non-U.S. corporations, non-U.S. government debt and supranational debt.
Bloomberg Barclays U.S. Treasury Index is the U.S. Treasury component of the U.S. Government Index. This index includes public obligations of the U.S. Treasury with a remaining maturity of one year or more.
It is not possible to invest directly in an index.
Yield-to-duration is the calculation of yield per unit of duration and can be used to calculate what percentage increase in rates will offset a bond fund's yield.
About DoubleLine Capital LP
DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. As of the June 30, 2019 end of the second quarter, DoubleLine Capital and its related entities managed $140 billion in assets across all vehicles, including open-end mutual funds, collective investment trusts, closed-end funds, exchange-traded funds, hedge funds, variable annuities, UCITS and separate accounts. DoubleLine's offices can be reached by telephone at (213) 633-8200 or by e-mail at [email protected]. Media can reach DoubleLine by e-mail at [email protected]. DoubleLine® is a registered trademark of DoubleLine Capital LP.
The Fund's investment objectives, risk, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the Fund and may be obtained by calling 1(877)354-6311 / 1(877)DLINE11 or visiting www.doublelinefunds.com. Please read the prospectus carefully before investing.
The DoubleLine Funds are distributed by Quasar Distributors, LLC.
Opinions expressed are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Mutual Fund investing involves risk; Principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in Asset-Backed and Mortgage-Backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. All investments involve risk. Principal loss is possible. Treasury notes are guaranteed by the U.S. government and thus they are considered to be safer than other asset classes.
SOURCE DoubleLine
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