RUSH TRANSCRIPT Percent also ░░░░░░░░ earnings pay pal down ░░░░░░░░ percent and under armour ░░░░░░░░ now by six point ░░░░░░░░ percent recapping stocks in ░░░░░░░░ red lower across the ░░░░░░░░ with the us and ░░░░░░░░ now down by five ░░░░░░░░ of one percent I ░░░░░░░░ Charlie and that is ░░░░░░░░ bloomberg business Splash pell ░░░░░░░░ Thank you so much ░░░░░░░░ appreciate it Let s ░░░░░░░░ Corporate credit I m ░░░░░░░░ looking at the bloomberg ░░░░░░░░ s aggregate total return ░░░░░░░░ unhedged index and that ░░░░░░░░ good news is it ░░░░░░░░ up three percent year ░░░░░░░░ date we re looking ░░░░░░░░ the corporate government high ░░░░░░░░ index That s a ░░░░░░░░ point One percent that ░░░░░░░░ a good as bet ░░░░░░░░ is all the fixed ░░░░░░░░ stuff gets crushed last ░░░░░░░░ so they get along ░░░░░░░░ to go to kind ░░░░░░░░ make it back but ░░░░░░░░ talk credit One of ░░░░░░░░ folks who like to ░░░░░░░░ in with is natalie ░░░░░░░░ head of investment great ░░░░░░░░ strategy a paid in ░░░░░░░░ in regal so natalie ░░░░░░░░ better year this year ░░░░░░░░ last year So we ░░░░░░░░ just forget how last ░░░░░░░░ what s driving this ░░░░░░░░ house the investment grade ░░░░░░░░ dealing with a Federal ░░░░░░░░ that has been really ░░░░░░░░ On raising rates Yeah ░░░░░░░░ for having me this ░░░░░░░░ a whole different story ░░░░░░░░ credit because now corporate ░░░░░░░░ yield over five percent ░░░░░░░░ year ago they are ░░░░░░░░ yielding three percent We ░░░░░░░░ all those that like ░░░░░░░░ so now what that ░░░░░░░░ takes largely behind us ░░░░░░░░ should be a good ░░░░░░░░ for credit even if ░░░░░░░░ get clip that keep ░░░░░░░░ we shall be argued ░░░░░░░░ percent this war like ░░░░░░░░ said already at three ░░░░░░░░ with Iraq people he ░░░░░░░░ get mid to high ░░░░░░░░ digit returns and natalie ░░░░░░░░ You got your mba ░░░░░░░░ the university of Texas ░░░░░░░░ Austin I actually I ░░░░░░░░ to the rival school ░░░░░░░░ went to Texas ada ░░░░░░░░ called station for that ░░░░░░░░ okay I wanted to ░░░░░░░░ you specifically when we ░░░░░░░░ talking about this space ░░░░░░░░ are you advising clients ░░░░░░░░ position at this point ░░░░░░░░ are you suggesting them ░░░░░░░░ buy What are you ░░░░░░░░ them to their seller ░░░░░░░░ away from Yes vote ░░░░░░░░ we re recommending an ░░░░░░░░ quality traits Are we ░░░░░░░░ prefer non financial be ░░░░░░░░ a lot of that ░░░░░░░░ companies come to market ░░░░░░░░ apple yesterday not a ░░░░░░░░ We want to start ░░░░░░░░ banks be a little ░░░░░░░░ more cautious there We ░░░░░░░░ you think we re ░░░░░░░░ of the crust of ░░░░░░░░ banking crisis of confidence ░░░░░░░░ we don t think ░░░░░░░░ s over and also ░░░░░░░░ serve as a beta ░░░░░░░░ the economy so do ░░░░░░░░ we re going to ░░░░░░░░ a recession in the ░░░░░░░░ year s time then ░░░░░░░░ likely going to underperform ░░░░░░░░ we re still so ░░░░░░░░ demand for these nonfinancial ░░░░░░░░ the new issue counter ░░░░░░░░ 20 two billion and ░░░░░░░░ five billion of the ░░░░░░░░ for those bonds are ░░░░░░░░ still want credit natalie ░░░░░░░░ mean I look at ░░░░░░░░ two year treasury and ░░░░░░░░ can get four point ░░░░░░░░ percent that s not ░░░░░░░░ bad I mean for ░░░░░░░░ know it s not ░░░░░░░░ bad for just hang ░░░░░░░░ Africa players with the ░░░░░░░░ government How do you ░░░░░░░░ about going out in ░░░░░░░░ of duration in your ░░░░░░░░ portfolio Well corporate one ░░░░░░░░ is great if you ░░░░░░░░ to lock it in ░░░░░░░░ two years but if ░░░░░░░░ think ultimately rates are ░░░░░░░░ to move lower we ░░░░░░░░ seeing them That is ░░░░░░░░ want to lock in ░░░░░░░░ duration or longer so ░░░░░░░░ rather by 30 year ░░░░░░░░ at three point eight ░░░░░░░░ an hour and on ░░░░░░░░ credit and you re ░░░░░░░░ it again about five ░░░░░░░░ but you re locking ░░░░░░░░ in potentially for much ░░░░░░░░ time horizon so breaking ░░░░░░░░ bulk of the demand ░░░░░░░░ seen as really intended ░░░░░░░░ your corporates and a ░░░░░░░░ bustle on the front ░░░░░░░░ despite it s cheapness ░░░░░░░░ more specifically when we ░░░░░░░░ talking about corporate bonds ░░░░░░░░ you find to be ░░░░░░░░ most attractive At this ░░░░░░░░ we think that more ░░░░░░░░ health care sector consumer ░░░░░░░░ secular called names are ░░░░░░░░ as well Some of ░░░░░░░░ consumer names have been ░░░░░░░░ really well Earnings are ░░░░░░░░ in better than anticipated ░░░░░░░░ against for the fact ░░░░░░░░ companies are able to ░░░░░░░░ through a lot of ░░░░░░░░ costs onto the consumer ░░░░░░░░ a fundamental perspective on ░░░░░░░░ America in pretty good ░░░░░░░░ still be thing in ░░░░░░░░ nonfinancial side So what ░░░░░░░░ some of the sectors ░░░░░░░░ you like you mentioned ░░░░░░░░ of the tech names ░░░░░░░░ I ve been coming ░░░░░░░░ the market apple What ░░░░░░░░ some sectors you guys ░░░░░░░░ paying attention to these ░░░░░░░░ We also like how ░░░░░░░░ you tell these seen ░░░░░░░░ decent amount of issue ░░░░░░░░ of the tell these ░░░░░░░░ which is typically a ░░░░░░░░ that pretty high quality ░░░░░░░░ that is coming much ░░░░░░░░ than it has historically ░░░░░░░░ were also some of ░░░░░░░░ communications Names are doing ░░░░░░░░ be a team will ░░░░░░░░ on the market yesterday ░░░░░░░░ well And the high ░░░░░░░░ high yield market has ░░░░░░░░ coming under pressure and ░░░░░░░░ the spreads have in ░░░░░░░░ talk to us about ░░░░░░░░ you re seeing in ░░░░░░░░ particular space Yes you ░░░░░░░░ a lot of issuance ░░░░░░░░ up particularly out of ░░░░░░░░ credit so sometimes we ░░░░░░░░ they re coming to ░░░░░░░░ just because it s ░░░░░░░░ and they want to ░░░░░░░░ in finance law They ░░░░░░░░ but sprites have why ░░░░░░░░ the year because people ░░░░░░░░ concerned tell you how ░░░░░░░░ yield will perform in ░░░░░░░░ recession You ve already ░░░░░░░░ a few default so ░░░░░░░░ this year but we ░░░░░░░░ most of the high ░░░░░░░░ market as actually improved ░░░░░░░░ quality Roughly fifty percent ░░░░░░░░ down the double d ░░░░░░░░ category which we still ░░░░░░░░ is gonna Do okay ░░░░░░░░ re in a recession ░░░░░░░░ we put their yields ░░░░░░░░ pretty attractive now autograph ░░░░░░░░ and a half percent ░░░░░░░░ we do expect some ░░░░░░░░ volatility here So you ░░░░░░░░ to be very careful ░░░░░░░░ name selection like an ░░░░░░░░ when you re seeing ░░░░░░░░ type of volatility What ░░░░░░░░ telling us about the ░░░░░░░░ I think they still ░░░░░░░░ lot of uncertainty most ░░░░░░░░ I think akio that ░░░░░░░░ feds probably done the ░░░░░░░░ hiking cycle for now ░░░░░░░░ go one in of ░░░░░░░░ directions and they re ░░░░░░░░ kind of good for ░░░░░░░░ because of the that ░░░░░░░░ right and that the ░░░░░░░░ for longer That means ░░░░░░░░ is in good shape ░░░░░░░░ isn t to eyes ░░░░░░░░ corporate spies in kind ░░░░░░░░ hang out where they ░░░░░░░░ you clipped upkeep on ░░░░░░░░ if that that actually ░░░░░░░░ half the that s ░░░░░░░░ to be good from ░░░░░░░░ right side in that ░░░░░░░░ bond yields were falling ░░░░░░░░ will go up and ░░░░░░░░ if spreads wiping are ░░░░░░░░ gonna win from on ░░░░░░░░ duration sites We think ░░░░░░░░ re pretty well positioned ░░░░░░░░ year You want a ░░░░░░░░ defensive holding and in ░░░░░░░░ chargers or corporate bonds ░░░░░░░░ only are your animals ░░░░░░░░ your fund managers Are ░░░░░░░░ running Kind of a ░░░░░░░░ model are the when ░░░░░░░░ put some money to ░░░░░░░░ or there s an ░░░░░░░░ or whatever new admissions ░░░░░░░░ they kind of thing ░░░░░░░░ s dust off our ░░░░░░░░ models or or or ░░░░░░░░ But we re looking ░░░░░░░░ that on the name ░░░░░░░░ name basis absolutely so ░░░░░░░░ resilient are these companies ░░░░░░░░ to be in a ░░░░░░░░ A lot of these ░░░░░░░░ doesn t look great ░░░░░░░░ are gonna hold up ░░░░░░░░ we aren t expecting ░░░░░░░░ big wave of downgrades ░░░░░░░░ high yield but we ░░░░░░░░ seen a couple of ░░░░░░░░ for such as nissan ░░░░░░░░ here So we re ░░░░░░░░ being very careful about ░░░░░░░░ costs me names and ░░░░░░░░ a modeling Recession and ░░░░░░░░ you re talking about ░░░░░░░░ able to fair threw ░░░░░░░░ a potential of recession ░░░░░░░░ mean we re we ░░░░░░░░ talking about some of ░░░░░░░░ technology names as well ░░░░░░░░ and you mentioned health ░░░░░░░░ earlier as well as ░░░░░░░░ I mean which ones ░░░░░░░░ you think in this ░░░░░░░░ that you have can ░░░░░░░░ hold up a better ░░░░░░░░ it s just kind ░░░░░░░░ it s low slower ░░░░░░░░ environment or even if ░░░░░░░░ is a procession versus ░░░░░░░░ that might be more ░░░░░░░░ This act as I ░░░░░░░░ I do think will ░░░░░░░░ better those with a ░░░░░░░░ We think our well ░░░░░░░░ so a lot of ░░░░░░░░ factors which may hit ░░░░░░░░ in your seen it ░░░░░░░░ the equity side which ░░░░░░░░ be a big hit ░░░░░░░░ their stocks if they ░░░░░░░░ earnings It s not ░░░░░░░░ concerned from the bondholders ░░░░░░░░ apple has a very ░░░░░░░░ strong Cash position so ░░░░░░░░ are that s the ░░░░░░░░ which we think would ░░░░░░░░ very well from a ░░░░░░░░ perspective or through a ░░░░░░░░ even if their stock ░░░░░░░░ to get a little ░░░░░░░░ we thank you so ░░░░░░░░ We always appreciate getting ░░░░░░░░ inside natalie traffic She ░░░░░░░░ of investment grade credit ░░░░░░░░ of paid in in ░░░░░░░░ buying into this market ░░░░░░░░ some duration.