DoubleLine Capital LP

I'd like to thank everyone for listening this week.

You know what? Hit us up on the X at D-Line Minutes or send us an email at minutes at DoubleLine.com with any questions, comments, or suggestions.

Yep.

Don't forget our YouTube channels, YouTube.com slash DoubleLine Capital.

We have Jeffrey Gumlock's webcast that he did on Tuesday already up.

The replay is up there.

I'm looking at it now from Fortune, from Fortune magazine.

A recent analysis from investment management firm DoubleLine noted that in 2025, the federal net interest payment on the U.S.'s now $40 trillion national debt reached 18.5% of revenue.

surpassing 1991's record 18.4%.

That means the U.S. is collecting nearly 19% of all taxes and revenue just to pay off interest on its ballooning debt, equivalent to $1.25 trillion more than the entire 2026 defense budget.

years.Okay. Let's take a look at AI CapEx spending.

This is from, uh, DoubleLine research, and I'll just show you a few numbers in their projections here.

Hyperscalers CapEx by year.

2026, $760 billion.

Yes, thank you to our listeners out there today on DL Minutes.

Hit us up on X at DLineMinutes or send us an email at minutes at DoubleLine.com with any questions, comments, or suggestions.

Don't forget our YouTube channel is YouTube.com slash DoubleLineCapital.

As I mentioned, I think a couple times here, Jeff Sherman was on CNBC yesterday, so we have that video up.

We also have Ken Shinoda's Channel 11 up, titled Judgment Day, and he does say in the very beginning of the video that it's after terminator 2 because of this whole ai and skynet and luckily we did survive that uh the day that they mentioned in the movie um but uh you know and he also mentioned that you know interestingly enough they we get more clicks if it's a bearish title so he's trying to trying to game the system a little bit and see if see if it works and right now it looks like almost 8 000 people have watched in a day so it maybe it is working

And then some questions about whether a hike really might be in the cards for the next Fed meeting after comments from Waller today as Fed hike odds for September are now below 50.

Reaction from DoubleLine's Jeffrey Sherman in just a minute.

ISM services just crossing the tape.

Rick Santelli has that for us.

And so obviously, the Treasury secretary has tried to come in and talk about some form of intervention there.

Intervention may be a short-term plug over maybe a week or two of trading, but it's effectively, unless there's this very big bazooka on the other side of what they're going to do at the long end of the curve, it's going to be hard to contain it.

And so the best way we believe here at DoubleLine to contain the back end of the curve is to hike rates because that shows that the Fed is serious about inflation.

We obviously have all the trials and tribulations about the fiscal side, but if they are staunch on this inflation front, hiking rates would help the overall back end of the curve.

Thanks to our listeners out there today on DL Minutes.

Hit us up on X at DLine Minutes or send us an email at minutes at DoubleLine.com with any questions, comments or suggestions.

Don't forget our YouTube channel is

YouTube.com slash DoubleLine Capital.

Good time to catch up on those videos that we have out there, TV appearances and whatnot.

And with that, I'd like to thank everyone for listening and hope everyone has a great weekend.

I'd say thanks to all our listeners out there today on DL Minutes.

Hit us up on X at DLineMinutes or send us an email at minutes at DoubleLine.com with any questions, comments, or suggestions.

Yeah, you can find more information about DoubleLine on our website, DoubleLine.com. Don't forget to subscribe to our YouTube channel at YouTube.com slash DoubleLine Capital.

We got some content up for anybody who's hungry for more analysis.

I think the thing to note is we have a new perspectives with Bill Campbell on the Fed.

Take care out there.

This presentation was recorded on the date indicated.

Views and opinions expressed herein are those of the individual and do not necessarily reflect the views of DoubleLine Capital LP, its affiliates, or employees, should not be construed as an offer to buy or sell any securities, and are subject to change without notice.

Yeah, so if you think of like the world's largest mutual funds are actually not equity funds, they're bond funds.

Things like PIMCO Total Return Fund, DoubleLine, Vanguard Total Bond Fund.

These things are the worst version of investing in bonds because by prospectus, they have to be...

Single A or above, is single A always the best credit to buy? Probably not.

But more and more people are talking about, not just Jeff Gundlach on the West Coast, but he's been talking about this for a while.

He's a guy at DoubleLine, and he's saying, and I, and I'm more believing him now, that the US government is eventually, because the amount of debt we've run up, um, they're not gonna be able to scheme their way out of this.

They're trying, but the amount of debt we continue to run up, there's just no way to pay the bill back, unfortunately, uh, without scheming Treasury rates down.

Temporarily, they're borrowing more money in the short end, but I wouldn't own Treasuries past two years, certainly past five years-