RUSH TRANSCRIPT And next ░░░░░░░░ said potential for nor ░░░░░░░░ ahead Bring in Nancy ░░░░░░░░ founder and with capital ░░░░░░░░ good to see you ░░░░░░░░ capital Thanks to having ░░░░░░░░ back And particularly in ░░░░░░░░ income your kwaerarea of ░░░░░░░░ a lot s changed ░░░░░░░░ we saw each other ░░░░░░░░ has Less than 30 ░░░░░░░░ since td purchases stopped ░░░░░░░░ to imagine taper was ░░░░░░░░ last month and now ░░░░░░░░ balance sheet and how ░░░░░░░░ unwind the money supply ░░░░░░░░ tame inflation I think ░░░░░░░░ Fed has come to ░░░░░░░░ realization the rate hikes ░░░░░░░░ are not enough to ░░░░░░░░ the inflation we re ░░░░░░░░ in our everyday lives ░░░░░░░░ a turbulent time Especially ░░░░░░░░ bond investors What does ░░░░░░░░ mean for how you ░░░░░░░░ at the market and ░░░░░░░░ you try and make ░░░░░░░░ off of this new ░░░░░░░░ Well you know me ░░░░░░░░ I we own volatility ░░░░░░░░ income volatility in our ░░░░░░░░ the more turbulent the ░░░░░░░░ perp I think that ░░░░░░░░ why investors have diversifying ░░░░░░░░ in their portfolio and ░░░░░░░░ can t have everything ░░░░░░░░ looks the same diversity ░░░░░░░░ good especially long volatility ░░░░░░░░ fixed income Seems we ░░░░░░░░ just getting the party ░░░░░░░░ Feeling like I don ░░░░░░░░ know what majority of ░░░░░░░░ investors are institutional versus ░░░░░░░░ sure it s very ░░░░░░░░ towards the institutional side ░░░░░░░░ do you say to ░░░░░░░░ investors who are watching ░░░░░░░░ and saying you know ░░░░░░░░ agree with everything that ░░░░░░░░ says but I can ░░░░░░░░ buy tips inflation protected ░░░░░░░░ that s my bread ░░░░░░░░ butter in times like ░░░░░░░░ Why is now different ░░░░░░░░ why look at something ░░░░░░░░ your products Tips have ░░░░░░░░ index only Consumer price ░░░░░░░░ compare it to the ░░░░░░░░ of stocks and equities ░░░░░░░░ would ever buy dow ░░░░░░░░ industrial index and say ░░░░░░░░ da I have U ░░░░░░░░ equities why ever do ░░░░░░░░ with something as big ░░░░░░░░ broad as inflation Inflation ░░░░░░░░ very hard to measure ░░░░░░░░ very big thing what ░░░░░░░░ do is take that ░░░░░░░░ treasury portfolio and augment ░░░░░░░░ with another way another ░░░░░░░░ to measure inflation expectations ░░░░░░░░ interest rate differentials is ░░░░░░░░ very simple way of ░░░░░░░░ a way of accessing ░░░░░░░░ expectations outside of CPI ░░░░░░░░ it s where lenders ░░░░░░░░ money right If I ░░░░░░░░ if you were going ░░░░░░░░ give me a loan ░░░░░░░░ a week and I ░░░░░░░░ actually I d like ░░░░░░░░ loan for a month ░░░░░░░░ shgs actually for 10 ░░░░░░░░ that s inflation expectations ░░░░░░░░ what we try to ░░░░░░░░ in our strategy Oh ░░░░░░░░ d make you pay ░░░░░░░░ higher interest rate if ░░░░░░░░ stretched it out like ░░░░░░░░ guarantee you that let ░░░░░░░░ ask you this You ░░░░░░░░ one of our producers ░░░░░░░░ think the market fully ░░░░░░░░ in interest rate hikes ░░░░░░░░ wonder is that really ░░░░░░░░ and if the behavior ░░░░░░░░ last couple of days ░░░░░░░░ otherwise Well you can ░░░░░░░░ look at that and ░░░░░░░░ futures over 200 basis ░░░░░░░░ s additional hike priced ░░░░░░░░ this year alone and ░░░░░░░░ another almost two full ░░░░░░░░ priced in in 2023 ░░░░░░░░ Fed used their words ░░░░░░░░ guidance and it s ░░░░░░░░ effective The rates market ░░░░░░░░ they ll raise rates ░░░░░░░░ much and we say ░░░░░░░░ quadratic we think rate ░░░░░░░░ are not enough Not ░░░░░░░░ to bring more lumber ░░░░░░░░ Home Depot or more ░░░░░░░░ drivers get people back ░░░░░░░░ work it s just ░░░░░░░░ side and talking about ░░░░░░░░ elephant from the room ░░░░░░░░ side the balance sheet ░░░░░░░░ 9 trillion a great ░░░░░░░░ for them to address ░░░░░░░░ but also think will ░░░░░░░░ more fixed income volatility ░░░░░░░░ investors portfolios and why ░░░░░░░░ strategies fit in well ░░░░░░░░ today s environment Trying ░░░░░░░░ sort of think the ░░░░░░░░ in which your strategy ░░░░░░░░ best Is it stagflation ░░░░░░░░ do you foresee the ░░░░░░░░ amid talk of recession ░░░░░░░░ stagflation and how that ░░░░░░░░ into how investors should ░░░░░░░░ about where they re ░░░░░░░░ money Well stagflation we ░░░░░░░░ t had since the ░░░░░░░░ if you close your ░░░░░░░░ and look at the ░░░░░░░░ quarter stocks bonds everything ░░░░░░░░ off together stagflationary environment ░░░░░░░░ typically bad for both ░░░░░░░░ and bonds Obviously our ░░░░░░░░ etf didn t exist ░░░░░░░░ the 70s but I ░░░░░░░░ it would do well ░░░░░░░░ a stagflationary nvironment because ░░░░░░░░ think you d have ░░░░░░░░ fixed income volatility I ░░░░░░░░ inflation strategies would outperform ░░░░░░░░ strategies as well as ░░░░░░░░ yit companies can be ░░░░░░░░ if you have higher ░░░░░░░░ lower growth Obviously we ░░░░░░░░ stagflation doesn t happen ░░░░░░░░ I think investors need ░░░░░░░░ be prepared for things ░░░░░░░░ are unknown and stagflation ░░░░░░░░ one of those things ░░░░░░░░ it could potentially happen ░░░░░░░░ smarter amp I talk ░░░░░░░░ you I feel that ░░░░░░░░ good to see you ░░░░░░░░ Davis from quadratics joining ░░░░░░░░ in overtime See you ░░░░░░░░ Thank you.