RUSH TRANSCRIPT One Andrew ░░░░░░░░ the snow there chief ░░░░░░░░ officer and I got ░░░░░░░░ go to your wheelhouse ░░░░░░░░ cantor where you are ░░░░░░░░ Rivet is when you ░░░░░░░░ at commercial real estate ░░░░░░░░ s a doing through ░░░░░░░░ prism of the trenches ░░░░░░░░ cantor fitzgerald years ago ░░░░░░░░ worried are you about ░░░░░░░░ creeping over into other ░░░░░░░░ spaces For sure I ░░░░░░░░ not scared that it ░░░░░░░░ into residential home loans ░░░░░░░░ asset backed or student ░░░░░░░░ commercial real estate it ░░░░░░░░ good Until It s ░░░░░░░░ and you don t ░░░░░░░░ you have five year ░░░░░░░░ leases and that borrower ░░░░░░░░ say all right I ░░░░░░░░ gone and if you ░░░░░░░░ at where nomura s ░░░░░░░░ over in in in ░░░░░░░░ midtown that entire building ░░░░░░░░ going vacant kids folks ░░░░░░░░ moving over the hudson ░░░░░░░░ Can you don t ░░░░░░░░ until the last minute ░░░░░░░░ that borrowers not gonna ░░░░░░░░ you anymore That s ░░░░░░░░ problem with commercial real ░░░░░░░░ and CBS So where ░░░░░░░░ we going to see ░░░░░░░░ the weakness insecurities smart ░░░░░░░░ mortgage backed securities markets ░░░░░░░░ asset back six We ░░░░░░░░ a lot of half ░░░░░░░░ buildings here in Manhattan ░░░░░░░░ in Boston and San ░░░░░░░░ and made me not ░░░░░░░░ much in Dallas where ░░░░░░░░ are where we going ░░░░░░░░ see that differently directly ░░░░░░░░ CBS but that will ░░░░░░░░ as well and banks ░░░░░░░░ saw the news you ░░░░░░░░ what pimco came out ░░░░░░░░ this morning saying Pain ░░░░░░░░ commercial real estate really ░░░░░░░░ based in in in ░░░░░░░░ community banks so there ░░░░░░░░ be bank securities bake ░░░░░░░░ there s an old ░░░░░░░░ Trump s trust preferred ░░░░░░░░ blank sub debt on ░░░░░░░░ so you re talking ░░░░░░░░ some real pussy What ░░░░░░░░ call that bitty subbed ░░░░░░░░ bank debt is crazy ░░░░░░░░ two inches believe Paul ░░░░░░░░ the interview so gather ░░░░░░░░ eight with with with ░░░░░░░░ firm Where do you ░░░░░░░░ opportunities right now where ░░░░░░░░ deploying capital these days ░░░░░░░░ love the 11 trillion ░░░░░░░░ mortgage backed security ma ░░░░░░░░ but homeowners have a ░░░░░░░░ of home equity They ░░░░░░░░ fifty five percent home ░░░░░░░░ nationwide U l a ░░░░░░░░ s have been paying ░░░░░░░░ their homelands be Percent ░░░░░░░░ the last forty five ░░░░░░░░ so tons of home ░░░░░░░░ We love old They ░░░░░░░░ them legacy mortgage bonds ░░░░░░░░ oh seven and earlier ░░░░░░░░ I ve been trading ░░░░░░░░ same stuff no joke ░░░░░░░░ two thousand and five ░░░░░░░░ I thought this market ░░░░░░░░ going to die at ░░░░░░░░ been a five year ░░░░░░░░ The ability to buy ░░░░░░░░ bonds at fifty sixty ░░░░░░░░ on the dollar At ░░░░░░░░ eight percent yield with ░░░░░░░░ upside a immoral were ░░░░░░░░ to mature exact got ░░░░░░░░ coupon so borrowers do ░░░░░░░░ pay tomorrow earn a ░░░░░░░░ from now which is ░░░░░░░░ they were due in ░░░░░░░░ years ago or 20 ░░░░░░░░ yield securities Ever going ░░░░░░░░ premium more is taking ░░░░░░░░ in Washington on this ░░░░░░░░ fundamental call for rigging ░░░░░░░░ and this like lindsay ░░░░░░░░ stiefel is you guys ░░░░░░░░ looking for higher yields ░░░░░░░░ mean everybody else Are ░░░░░░░░ believe price up yield ░░░░░░░░ and you re going ░░░░░░░░ Why By for Katie ░░░░░░░░ and what s really ░░░░░░░░ consumers as inflation in ░░░░░░░░ what will bring that ░░░░░░░░ is higher interest rates ░░░░░░░░ needs to be a ░░░░░░░░ bit more pain in ░░░░░░░░ real estate at banks ░░░░░░░░ yield corporations anybody that ░░░░░░░░ there needs to be ░░░░░░░░ little bit more pain ░░░░░░░░ order for prices to ░░░░░░░░ down In order for ░░░░░░░░ to happen rates need ░░░░░░░░ go up a the ░░░░░░░░ is deeply inverted still ░░░░░░░░ s been inverted for ░░░░░░░░ last two years Folks ░░░░░░░░ are calling for hey ░░░░░░░░ out and buy fixed ░░░░░░░░ paper know by floating ░░░░░░░░ paper stay on the ░░░░░░░░ end of the curve ░░░░░░░░ s yielding five Forty ░░░░░░░░ an extra one Two ░░░░░░░░ percentage points off of ░░░░░░░░ front end of the ░░░░░░░░ in wait for the ░░░░░░░░ To lose any money ░░░░░░░░ at the front end ░░░░░░░░ a curve and floating ░░░░░░░░ paper So do I ░░░░░░░░ from your comments that ░░░░░░░░ think the federal hike ░░░░░░░░ or that rates will ░░░░░░░░ stay where they are ░░░░░░░░ think they ll stay ░░░░░░░░ they are and what ░░░░░░░░ re seeing is the ░░░░░░░░ in because a lot ░░░░░░░░ foreign buyers are leave ░░░░░░░░ I hope that back ░░░░░░░░ flattens out normalizes that ░░░░░░░░ actually allow the Fed ░░░░░░░░ van potentially cut rates ░░░░░░░░ let s say a ░░░░░░░░ from now If we ░░░░░░░░ the schuyler where white ░░░░░░░░ A recovery over five ░░░░░░░░ 10 years and bonds ░░░░░░░░ see as ever getting ░░░░░░░░ to price up you ░░░░░░░░ down as we saw ░░░░░░░░ the great moderation isn ░░░░░░░░ just it s actually ░░░░░░░░ I I hope we ░░░░░░░░ t get back to ░░░░░░░░ or type of refinance ░░░░░░░░ mortgage In a in ░░░░░░░░ in a month or ░░░░░░░░ and my keep on ░░░░░░░░ from 47 a half ░░░░░░░░ in sound like wow ░░░░░░░░ hurts yep And so ░░░░░░░░ 20 years was not ░░░░░░░░ or back to in ░░░░░░░░ I m sitting in ░░░░░░░░ pals see I want ░░░░░░░░ to be at five ░░░░░░░░ gives me a ton ░░░░░░░░ leeway to maneuver if ░░░░░░░░ s another calamity So ░░░░░░░░ do you think we ░░░░░░░░ gonna here tomorrow from ░░░░░░░░ Nothing now Going to ░░░░░░░░ at dad we re ░░░░░░░░ to wait for things ░░░░░░░░ percolate whether it s ░░░░░░░░ inflation going higher unemployment ░░░░░░░░ higher that unemployment report ░░░░░░░░ week did not help ░░░░░░░░ situation Just going to ░░░░░░░░ the can down the ░░░░░░░░ another month until the ░░░░░░░░ me If the cash ░░░░░░░░ of the yield cubs ░░░░░░░░ quickly have to cash ░░░░░░░░ wines hot where s ░░░░░░░░ money flow potentially bullish ░░░░░░░░ equities right malicious by ░░░░░░░░ risk on and you ░░░░░░░░ t debts really cheap ░░░░░░░░ bonds or at you ░░░░░░░░ close your eyes and ░░░░░░░░ five and a half ░░░░░░░░ percent yield on really ░░░░░░░░ quality paper If you ░░░░░░░░ a little bit or ░░░░░░░░ can put together a ░░░░░░░░ Sorry schuyler one Thank ░░░░░░░░ so much si io ░░░░░░░░ capital just brilliant there ░░░░░░░░ they re that it ░░░░░░░░ t quite common Dallas ░░░░░░░░ that s where all ░░░░░░░░ smart people are yeah ░░░░░░░░ stock exchanges move moving ░░░░░░░░ these the rick close ░░░░░░░░ chose Michael dell s ░░░░░░░░ the New York Stock ░░░░░░░░ is okay World that ░░░░░░░░ they there s a ░░░░░░░░ of companies will go ░░░░░░░░ and exxonmobil yeah The ░░░░░░░░ code everybody s gonna ░░░░░░░░ talks to country in ░░░░░░░░ How about one song ░░░░░░░░ made an artist This ░░░░░░░░ a son didn t ░░░░░░░░ try to get the ░░░░░░░░ four teams Are You ░░░░░░░░ nothing Are you kidding ░░░░░░░░ Who is this person ░░░░░░░░ muskrats? This is the first