RUSH TRANSCRIPT Pivots we ░░░░░░░░ to make up in ░░░░░░░░ space we thank you ░░░░░░░░ much It is a ░░░░░░░░ read check out the ░░░░░░░░ take on your terminal ░░░░░░░░ you re lucky enough ░░░░░░░░ have one Let s ░░░░░░░░ about these markets what ░░░░░░░░ you expect for 2023 ░░░░░░░░ Davis is with us ░░░░░░░░ quadratic capital management Always ░░░░░░░░ to have you on ░░░░░░░░ about the offending that ░░░░░░░░ Federal Reserve going so ░░░░░░░░ so strong What do ░░░░░░░░ anticipate in 2023 and ░░░░░░░░ we see a dialing ░░░░░░░░ soon Nancy the Fed ░░░░░░░░ the first of most ░░░░░░░░ of the central banks ░░░░░░░░ have seen the ecb ░░░░░░░░ to catch up the ░░░░░░░░ s started the balance ░░░░░░░░ reduction with quantitative tightening ░░░░░░░░ the ecb has not ░░░░░░░░ into 23 we should ░░░░░░░░ the ecb to announce ░░░░░░░░ sort of quantitative tightening ░░░░░░░░ other than hitting the ░░░░░░░░ over and over again ░░░░░░░░ policy rate hikes which ░░░░░░░░ been the primary tool ░░░░░░░░ far Paul I was ░░░░░░░░ there would not be ░░░░░░░░ on this test What ░░░░░░░░ you think of the ░░░░░░░░ that we have seen ░░░░░░░░ inflation it s behind ░░░░░░░░ prices are coming down ░░░░░░░░ is a fed reserve ░░░░░░░░ can pause Are they ░░░░░░░░ or are they very ░░░░░░░░ trying to keep this ░░░░░░░░ under control Nancy the ░░░░░░░░ is convinced inflation will ░░░░░░░░ dramatically Realized inflation which ░░░░░░░░ what you were saying ░░░░░░░░ lagging indicators like the ░░░░░░░░ The cbi is double ░░░░░░░░ in most of Europe ░░░░░░░░ the U S it ░░░░░░░░ well above the 2 ░░░░░░░░ But see tran expectations ░░░░░░░░ around 2 even one ░░░░░░░░ forward the Fed has ░░░░░░░░ effective convincing the market ░░░░░░░░ they have this and ░░░░░░░░ will dramatically reduce inflation ░░░░░░░░ a disconnect between future ░░░░░░░░ I think it is ░░░░░░░░ question of whether investors ░░░░░░░░ the Fed has got ░░░░░░░░ whether the policy rate ░░░░░░░░ will be effective The ░░░░░░░░ is pricing in inflation ░░░░░░░░ fall dramatically Caroline I ░░░░░░░░ like I ve said ░░░░░░░░ of those words volatility ░░░░░░░░ what about hedging how ░░░░░░░░ is it trending to ░░░░░░░░ Nancy I ve all ░░░░░░░░ long interest volatility Interest ░░░░░░░░ ball has been performing ░░░░░░░░ in 2022 It s ░░░░░░░░ of the few pockets ░░░░░░░░ things that are trending ░░░░░░░░ because inflation expectations have ░░░░░░░░ falling all year even ░░░░░░░░ it is that a ░░░░░░░░ year down The inverse ░░░░░░░░ curve is even lower ░░░░░░░░ it was in the ░░░░░░░░ 80 s I do ░░░░░░░░ interest rate volatility will ░░░░░░░░ to be well bid ░░░░░░░░ the Fed continues to ░░░░░░░░ their balance sheet to ░░░░░░░░ and bonds to mature ░░░░░░░░ think the strong dollar ░░░░░░░░ potentially be a catalyst ░░░░░░░░ have the yield curve ░░░░░░░░ and the bank of ░░░░░░░░ recently came out and ░░░░░░░░ their band for yield ░░░░░░░░ control That s a ░░░░░░░░ in the right direction ░░░░░░░░ get things more normal ░░░░░░░░ thing I love so ░░░░░░░░ about the I ve ░░░░░░░░ etf the recession is ░░░░░░░░ and if we have ░░░░░░░░ recession that would make ░░░░░░░░ bid It was deep ░░░░░░░░ the yield curve once ░░░░░░░░ Fed prices and hikes ░░░░░░░░ the front and make ░░░░░░░░ increase It s just ░░░░░░░░ nice normalization environment because ░░░░░░░░ we see people go ░░░░░░░░ gone and 23 because ░░░░░░░░ consensus is so wildly ░░░░░░░░ that could make the ░░░░░░░░ curve steep and as ░░░░░░░░ come out of hiding ░░░░░░░░ their 10 year treasuries ░░░░░░░░ add more risky assets ░░░░░░░░ is unique because it ░░░░░░░░ not a one way ░░░░░░░░ of recession or a ░░░░░░░░ on and can do ░░░░░░░░ in multiple environments That ░░░░░░░░ why a love it ░░░░░░░░ much Thank you for ░░░░░░░░ your support with high ░░░░░░░░ Paul do I go ░░░░░░░░ bonds here Nancy I ░░░░░░░░ say look at I ░░░░░░░░ it s just a ░░░░░░░░ type of spread risk ░░░░░░░░ Nancy Davis quadratic capital ░░░░░░░░ All I did was ░░░░░░░░ earnings That was a ░░░░░░░░ story that was my ░░░░░░░░ We appreciate getting thoughts ░░░░░░░░ Nancy With our news ░░░░░░░░ New York City here ░░░░░░░░ alisa mattea Lisa servers ░░░░░░░░ removed barricades against an ░░░░░░░░ albanian government They are ░░░░░░░░ to avert a balkan ░░░░░░░░ conflict.