RUSH TRANSCRIPT Network Let ░░░░░░░░ bring a jury client ░░░░░░░░ us treasury partners Managing ░░░░░░░░ he s got those ░░░░░░░░ hikes and of fed ░░░░░░░░ on as by jury ░░░░░░░░ afternoon we ve got ░░░░░░░░ jacks That whole symposium ░░░░░░░░ this week a bonds ░░░░░░░░ sell it off again ░░░░░░░░ looks like it s ░░░░░░░░ to break out What ░░░░░░░░ of pressure does that ░░░░░░░░ on Powell Oliver rooted ░░░░░░░░ terms of joy po ░░░░░░░░ is clearly is number ░░░░░░░░ priority The strong labor ░░░░░░░░ continues to give him ░░░░░░░░ ability to act upon ░░░░░░░░ priority and and try ░░░░░░░░ tighten policy while their ░░░░░░░░ strengthen the economy and ░░░░░░░░ under control over all ░░░░░░░░ that s really created ░░░░░░░░ great environment for corporate ░░░░░░░░ investors to earn very ░░░░░░░░ returns on their cash ░░░░░░░░ taking credit risk Sword ░░░░░░░░ that a trade then ░░░░░░░░ we trade this kind ░░░░░░░░ gap between the market ░░░░░░░░ the Fed is their ░░░░░░░░ to close the gap ░░░░░░░░ is it the markets ░░░░░░░░ there s been a ░░░░░░░░ of divergence year at ░░░░░░░░ if we interpret the ░░░░░░░░ rally to be about ░░░░░░░░ dovish fed Does that ░░░░░░░░ we re short stocks ░░░░░░░░ pals confirms that pay ░░░░░░░░ around Both photos clue ░░░░░░░░ a trajectory to continue ░░░░░░░░ tighten in the near ░░░░░░░░ try to go to ░░░░░░░░ to moderate and hopefully ░░░░░░░░ to come down over ░░░░░░░░ next few quarters The ░░░░░░░░ certainly lies to further ░░░░░░░░ in terms of foot ░░░░░░░░ in and 20 twenty ░░░░░░░░ and beyond for our ░░░░░░░░ who are probably publicly ░░░░░░░░ companies This is great ░░░░░░░░ for them to generate ░░░░░░░░ interest income and corporate ░░░░░░░░ again where they can ░░░░░░░░ three to four percent ░░░░░░░░ on relatively short duration ░░░░░░░░ that a year ago ░░░░░░░░ earning less than half ░░░░░░░░ one percent You re ░░░░░░░░ at which bonds serve ░░░░░░░░ function of income that ░░░░░░░░ them appealing is what ░░░░░░░░ re hinting at Jerry ░░░░░░░░ mean Are they are ░░░░░░░░ to be pension managers ░░░░░░░░ frothing at the mouth ░░░░░░░░ three percent Does it ░░░░░░░░ away from demand for ░░░░░░░░ assets at three percent ░░░░░░░░ at a level Now ░░░░░░░░ s juicy I think ░░░░░░░░ our clients is extremely ░░░░░░░░ real about over the ░░░░░░░░ 15 years and really ░░░░░░░░ been a couple of ░░░░░░░░ for companies to earn ░░░░░░░░ to four percent type ░░░░░░░░ on corporate cash So ░░░░░░░░ I think it s ░░░░░░░░ great opportunity for our ░░░░░░░░ yeah one year ago ░░░░░░░░ when we spoke Oliver ░░░░░░░░ re talking about Bitcoin ░░░░░░░░ a corporate cash investment ░░░░░░░░ our clients were never ░░░░░░░░ in But it s ░░░░░░░░ over fifty percent and ░░░░░░░░ today companies can go ░░░░░░░░ earn over three percent ░░░░░░░░ buying treasuries or are ░░░░░░░░ to four percent bind ░░░░░░░░ strong investment grade corporate ░░░░░░░░ The diversification experiment of ░░░░░░░░ has been going very ░░░░░░░░ golds not working so ░░░░░░░░ either but so if ░░░░░░░░ re okay with getting ░░░░░░░░ three percent and maybe ░░░░░░░░ give me something here ░░░░░░░░ about the rest of ░░░░░░░░ portfolio Jerry What Do ░░░░░░░░ do if these other ░░░░░░░░ uncorrelated things they get ░░░░░░░░ to us We see ░░░░░░░░ commercials We hear the ░░░░░░░░ on Twitter saying it ░░░░░░░░ gonna be gold it ░░░░░░░░ going to be Bitcoin ░░░░░░░░ like our options are ░░░░░░░░ and pretty low here ░░░░░░░░ what actually works But ░░░░░░░░ clients tend to be ░░░░░░░░ conservative corporate cash and ░░░░░░░░ restricted tried and true ░░░░░░░░ where we want to ░░░░░░░░ principal preservation and liquidity ░░░░░░░░ generating interest income So ░░░░░░░░ some of these companies ░░░░░░░░ might mean just stay ░░░░░░░░ money markets work today ░░░░░░░░ re get in just ░░░░░░░░ two per son for ░░░░░░░░ others who can take ░░░░░░░░ a little bit a ░░░░░░░░ and latter out there ░░░░░░░░ have that three to ░░░░░░░░ percent option if they ░░░░░░░░ extend the curve for ░░░░░░░░ of these companies that ░░░░░░░░ not optimal is it ░░░░░░░░ be more acquisitive and ░░░░░░░░ want to maintain that ░░░░░░░░ but but many of ░░░░░░░░ companies can segment on ░░░░░░░░ their cash and drive ░░░░░░░░ income on their balance ░░░░░░░░ A jury of what ░░░░░░░░ for the stock side ░░░░░░░░ we give up hope ░░░░░░░░ this markets unable able ░░░░░░░░ plug the new highs ░░░░░░░░ about the passive investor ░░░░░░░░ still has most of ░░░░░░░░ assets sitting in a ░░░░░░░░ equity index fund Oliver ░░░░░░░░ really focused on the ░░░░░░░░ cash segment of our ░░░░░░░░ base but I think ░░░░░░░░ all this is generally ░░░░░░░░ time to be cautious ░░░░░░░░ we re coming out ░░░░░░░░ a period that was ░░░░░░░░ optimal for for equity ░░░░░░░░ or the Fed at ░░░░░░░░ s back and there ░░░░░░░░ a lot of uncertainty ░░░░░░░░ the market today So ░░░░░░░░ are definite exercise And ░░░░░░░░ when it comes the ░░░░░░░░ markets but not sure ░░░░░░░░ betting against and necessarily ░░░░░░░░ against it but we ░░░░░░░░ certainly much more cautious ░░░░░░░░ we were a year ░░░░░░░░ or two years ago ░░░░░░░░ terms of our allocations ░░░░░░░░ where in the equity ░░░░░░░░ were invested today So ░░░░░░░░ that means higher cash ░░░░░░░░ Jerry what about just ░░░░░░░░ that cash to work ░░░░░░░░ all these phones These ░░░░░░░░ that have specific Gov ░░░░░░░░ that bet inverse to ░░░░░░░░ or inverse to bonds ░░░░░░░░ s so many ATM ░░░░░░░░ we a bet against ░░░░░░░░ market Do we have ░░░░░░░░ have an upmarket to ░░░░░░░░ money or can everyday ░░░░░░░░ figure out a way ░░░░░░░░ navigate it down turning ░░░░░░░░ I think in terms ░░░░░░░░ that fixed income markets ░░░░░░░░ funds it s it ░░░░░░░░ an opportune time for ░░░░░░░░ income investors for some ░░░░░░░░ that my mean separately ░░░░░░░░ portfolios a fixed income ░░░░░░░░ and others short to ░░░░░░░░ term durations and in ░░░░░░░░ funds potentially can work ░░░░░░░░ still think you need ░░░░░░░░ exercise caution terms of ░░░░░░░░ duration bond investments in ░░░░░░░░ s environment Thanks for ░░░░░░░░ conversation great start to ░░░░░░░░ show My pleasures they ░░░░░░░░ absolutely Joe Klein s ░░░░░░░░ director at treasury partners ░░░░░░░░ up.