Rick Rieder

We've reduced some IG because, quite frankly, it's not that fulfilling.

We're going to get a lot of supply.

The spread's not that interesting.

We've cut a little bit of the low-quality, high-yield.

By the way, we're running a bit less high-yield than we're running overall.

We've added to mortgages, although recently, the last couple of months, or not the last couple of months, the last few days, maybe we've cut a little bit of mortgages because the balance sheet discussion becomes a little less enthusiastic than it was before.

But we still like mortgages.

We like EM a lot.

the dollar will stay contained and so em the yield differential between em and high yield is as good as it's ever been and then the key one for us is and is securitization markets that i'll allow you to structure the collateral the covenants the uh you know what your attachment point is so we love the securitization market but you're right it's a different expression a little less credit a little more em a little more seeking the securitization zone by the way europe

killed it last year.

And now the benefit you're getting from Europe is not nearly as robust as it was.

So we've dulled down a little bit of that and actually more Asia in the portfolio.

So yeah, we've been moving around a fair amount to keep it dynamic and where we think the best opportunity is.

I think what Mike McKee said was right in that the Fed talked about the unemployment rate.

I have to tell you, I have a different take on it.

I think there is a, we're talking about 50,000 jobs and then a revision down over 70,000 jobs.

If you take, we're growing now, if you go to the last six months moving average, if you take out healthcare jobs, we're actually running negative jobs for the last six months away from healthcare, which is non-cyclical, not interest rate sensitive.

Actually, if you go back eight months,

The total net jobs is negative 213,000 jobs, net of health care.

What I think is going on is we have a productivity revolution of extraordinary proportion, that we have an economy that's growing at a quite robust rate, but we just don't need the people.