WEBVTT - Pimco CEO Manny Roman Talks AI Financing, Private Markets, Fixed Income

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Meta is said to have selected Pimco to help lead

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<v Speaker 2>a twenty nine billion dollar financing for its data center expansion.

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<v Speaker 2>I'm happy to say the Pimco CEO, Manay Roman, joins

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<v Speaker 2>us now for more manic.

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<v Speaker 3>Good morning, Good morning, Johnathan, Nice to see you.

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<v Speaker 2>It's good to see you, sir. How does a man

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<v Speaker 2>like you deal with a three am alarm clock on

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<v Speaker 2>the West Coast? How does that work?

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<v Speaker 3>You've got I make, I make the best expresso known

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<v Speaker 3>to mankind, you know, and you'll be hippy triple espresso,

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<v Speaker 3>triple expresso, and it feels good every day and happy

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<v Speaker 3>to be at work.

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<v Speaker 2>Well, I'm happy to have you with us this morning.

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<v Speaker 2>Let's get into some of these deals. I know, the

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<v Speaker 2>certain deals you can talk about, can't talk about. What

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<v Speaker 2>are talking broad terms about? The appetite here for the

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<v Speaker 2>capital that we need to provide to this particular force,

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<v Speaker 2>this growing force AI data centers. Where it's going to

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<v Speaker 2>come from and where you and the team are going

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<v Speaker 2>to fit in.

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<v Speaker 3>So I think it's I mean, it's it's a huge

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<v Speaker 3>super secular opportunity. There is an enormous need for funding

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<v Speaker 3>an equity in data center. We I don't know whether

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<v Speaker 3>the six point seven trillion dollars from McKinsey is remotely right,

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<v Speaker 3>but it's very, very big, and there'll be plenty of

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<v Speaker 3>financing deals to be done, and there'll be plenty of

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<v Speaker 3>construction to be done. And it's true in the US,

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<v Speaker 3>but it's true in other part of the world. And

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<v Speaker 3>the need also to have the infrastructure and the energy

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<v Speaker 3>will come after that. So you know, we all talk

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<v Speaker 3>about data center, but there's going to be a real

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<v Speaker 3>rush for energy in terms of providing the right set

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<v Speaker 3>up for this data center. And you know that's one

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<v Speaker 3>of the reason to be very bullish on natural gas.

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<v Speaker 2>We've reflected on one particular statement from one particular tax

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<v Speaker 2>CEO over the last twelve months that I think was

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<v Speaker 2>really quite important. It was last summer. It was the

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<v Speaker 2>Alphabet CEO when essentially he said that the greatest risk

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<v Speaker 2>here was under investing and not overinvesting. And I wonder

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<v Speaker 2>how you think about that from the perspective as an

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<v Speaker 2>asset manager. When you've got a group of companies that

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<v Speaker 2>are willing to run the risk of overinvesting, how do

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<v Speaker 2>you think about the risk around it?

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<v Speaker 3>In terms of think. What we will do is we

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<v Speaker 3>will look at every single deal and we will say

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<v Speaker 3>this makes sense for us, and this may make less sense,

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<v Speaker 3>and I think I think we I think one of

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<v Speaker 3>the one of the strength we have is to be

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<v Speaker 3>to be pretty pretty focused on relative value and sort

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<v Speaker 3>of think that, you know, there may be a fantastic

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<v Speaker 3>deal to be done which would be very very good

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<v Speaker 3>for our investors, and then we look at the next

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<v Speaker 3>one in the full light of day and decide whether

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<v Speaker 3>it fits our portfolio and whether this is something we

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<v Speaker 3>want to do.

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<v Speaker 2>I think it's important to build on this that Mark

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<v Speaker 2>Rowan said recently, we are what we originate. When it

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<v Speaker 2>comes to private markets, you are what you originate. It's

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<v Speaker 2>quite labor intensive. It takes a lot of work. When

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<v Speaker 2>you think about scaling this and building this as an opportunity,

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<v Speaker 2>how difficult is it? In Prentice, I.

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<v Speaker 3>Think we have built it differently from ourk We have

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<v Speaker 3>built it based on or experiencing fixed income or experience

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<v Speaker 3>in relative value. In a history of fifty four years,

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<v Speaker 3>in looking at all sorts of credit, we have fifty

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<v Speaker 3>five credit analysts who looks at every single segment of

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<v Speaker 3>the market, and I think we look at it from

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<v Speaker 3>a value standpoint, does it make sense? Is it something

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<v Speaker 3>we want to do. We shouldn't be originating for the

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<v Speaker 3>sake of originating. And there's a lot of money. There's

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<v Speaker 3>a lot of money coming to this market. You know,

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<v Speaker 3>some sectors would be very attractive and some will be

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<v Speaker 3>less so. And I think you want to be very

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<v Speaker 3>much on top of this and say I want to

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<v Speaker 3>do this, and I want to do less of this.

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<v Speaker 1>There's a concern, especially as CEOs say it's more important

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<v Speaker 1>to be throwing enough money at this rather than being underinvested.

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<v Speaker 1>And then you have people like David Heinhorn of Green

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<v Speaker 1>Light coming out and saying the numbers that are being

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<v Speaker 1>thrown around are so extreme that it's really really hard

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<v Speaker 1>to understand them. How difficult is it to invest in

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<v Speaker 1>a market where people are throwing spaghetti at the wall

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<v Speaker 1>to try to understand what's going to stick. And there

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<v Speaker 1>is a feeling of excess that continues to bubble up

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<v Speaker 1>around there.

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<v Speaker 3>So my friend, my friend, Richard Thayler, who is an

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<v Speaker 3>economic number price and console for US, has this this say.

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<v Speaker 3>He says, you know, when you make long term product prediction,

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<v Speaker 3>the degree of humidity understanding around the estimate should be

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<v Speaker 3>very very big. So when I hear an estimate like

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<v Speaker 3>six months seven trillion dollars, I don't know what to

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<v Speaker 3>make of it. David may be very well be right,

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<v Speaker 3>but we'll take it one step at the time. I

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<v Speaker 3>think six months horizon is about all we can do

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<v Speaker 3>in terms of the demand, and then you know, the

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<v Speaker 3>environment may change dramatically. You know, they are business cycles.

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<v Speaker 3>Sometimes things are cheap, sometimes they're expensive. If there's a recession,

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<v Speaker 3>all of a sudden spreads world widened, company may revisit

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<v Speaker 3>what they're trying to do, and so on and so forth.

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<v Speaker 1>So this is a difficulty. How do you have a

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<v Speaker 1>six month horizon when a lot of these investments are

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<v Speaker 1>ten year buildouts, when there are ten year usage, when

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<v Speaker 1>they are labor intensive, and infrastructure projects by nature are

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<v Speaker 1>a lot longer than six months.

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<v Speaker 3>So in terms of committing capital and in terms of

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<v Speaker 3>finding the right opportunity with the riding length of time,

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<v Speaker 3>we totally find to have a very long term horizon.

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<v Speaker 3>What I'm saying is I'm saying making long term prediction

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<v Speaker 3>in terms of how big the market will be, it's

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<v Speaker 3>very hard. I think you have some visibility over the

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<v Speaker 3>next six months in terms of what the demand is,

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<v Speaker 3>what the real demand is, and whether that slows down,

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<v Speaker 3>whether that accelerate. You just don't know, And I think

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<v Speaker 3>you've got to have I think you have to be

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<v Speaker 3>very humble about the season, just say, look, will take

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<v Speaker 3>it one step at the time and see what the

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<v Speaker 3>market gives us. And by the way, there may be

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<v Speaker 3>other opportunity which are more attractive. You know, you look,

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<v Speaker 3>for example, in asset backed finance business aircraft leasing. Aircraft

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<v Speaker 3>leasing is incredibly interesting and then nothing happens for five years,

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<v Speaker 3>and then it becomes very interesting again. And you got

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<v Speaker 3>to constantly say to yourself, are they better opportunity for

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<v Speaker 3>me to deploy money? And what do I want to do?

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<v Speaker 3>How do I think about the risk? How will I

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<v Speaker 3>get out what's the right risk return profile?

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<v Speaker 2>You may have Headline recently wanted to ask you about it.

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<v Speaker 2>Private markets haven't been tested? Can you build that out

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<v Speaker 2>a little bit more? What did you mean when you

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<v Speaker 2>said that the private markets haven't been tested?

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<v Speaker 3>Well, my partner Dana Versin and a CIO of course admit,

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<v Speaker 3>I have the charts and we will check the number.

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<v Speaker 3>About twenty times because we kind of didn't believe it.

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<v Speaker 3>But it shows the return on week single B which

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<v Speaker 3>is a reasonably good proxy for direct lending. And what

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<v Speaker 3>you see is you make money because the yield is higher,

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<v Speaker 3>and then there's a recession and then you lose it all.

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<v Speaker 3>And so I'm old enough to to remember nineteen ninety one,

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<v Speaker 3>I saw that, you know, there's a recession which came

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<v Speaker 3>out of nowhere from you know, essentially SNL having too

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<v Speaker 3>much high yelled nineteen ninety seven. The world is absolutely

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<v Speaker 3>final until there's an Asian crisis, and then you have AILITCM.

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<v Speaker 3>Then things become very cheap. And so you've got to

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<v Speaker 3>remember these things. And we have been in a period

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<v Speaker 3>since two thousand and nine of exceptionalism where you have

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<v Speaker 3>had very strong equity of return and very strong higher return.

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<v Speaker 3>If you believe this is gonna this is going to

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<v Speaker 3>continue for the next fifteen years, then I think you

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<v Speaker 3>should have the same position. But it may not be

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<v Speaker 3>the case. And I think I think we bring that

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<v Speaker 3>and said, the data's a the data.

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<v Speaker 2>Do you see parallels between now and those periods?

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<v Speaker 3>Well, I think the initial condition where we are right

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<v Speaker 3>now as search that equity markets are expensive by any measure,

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<v Speaker 3>they may go higher because momentum is strong and credit

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<v Speaker 3>market are tight in some part of the of the

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<v Speaker 3>of the spectrum. And I think that's that's the reality.

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<v Speaker 3>And look, we've been in period where things things are

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<v Speaker 3>expensive for a long time two thousand and five, two

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<v Speaker 3>thousand and six, where search period where things remain expensive

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<v Speaker 3>and become more expensive, and then something breaks and then

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<v Speaker 3>all of a sudden, you have you have a lot

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<v Speaker 3>of work to be done.

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<v Speaker 2>Many let's continue the conversation. We were having equity markets

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<v Speaker 2>very close to all time highs, credit spreads and their

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<v Speaker 2>multi decade ties on investment great high you'r spreads near

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<v Speaker 2>the ties of the year, and yet we've got a

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<v Speaker 2>FED official saying that we're excessively restrictive year across a

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<v Speaker 2>range of funds. You look across markets all the time

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<v Speaker 2>and the economy with the team, do you see any

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<v Speaker 2>signs that are excessively restrictive?

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<v Speaker 3>Well, I think rates are very high across across the globe,

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<v Speaker 3>right And I think I think you know, part of

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<v Speaker 3>the reason why I get up so early and happy

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<v Speaker 3>to go to work is because you know the opportunity

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<v Speaker 3>has been better and you know, we talk here about

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<v Speaker 3>the US, but look at the UK. The UK where

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<v Speaker 3>you're from is you know, tenure rates are four and

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<v Speaker 3>three quarter. Australia looks really, really attractive. So when we

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<v Speaker 3>think about the opportunity in a way, yes, we do

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<v Speaker 3>expect the FED to cut. How much they're going to

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<v Speaker 3>cut next year remant to be to be proven. No

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<v Speaker 3>one knows what's going to happen to the labor market.

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<v Speaker 3>But the reality is the opportunity in terms of global

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<v Speaker 3>fixed income is very, very big, and the opportunity to

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<v Speaker 3>add alpha is quite high. I'll tell you a funny story.

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<v Speaker 3>We have a partner in Tokyo called Tomoroya Messano, and

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<v Speaker 3>you know, for the longest time, there's not much happening

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<v Speaker 3>in Tokyo. So you sort of call him and you

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<v Speaker 3>have much out with him, and not much is happening,

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<v Speaker 3>and then all of a sudden, the Japanese fixed income

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<v Speaker 3>market becomes super exciting, and then there's a lot to do,

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<v Speaker 3>and there's a whole generation of people who have disappear

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<v Speaker 3>because they don't do it anymore. And so you have

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<v Speaker 3>a liber market which hasn't supply fixed income investor because

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<v Speaker 3>there was nothing to do for the longest time. And

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<v Speaker 3>so what I think is interesting is the difference of you.

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<v Speaker 3>The difference of opinion is also a source of incredible alpha.

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<v Speaker 3>And you know, if you want to think about white

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<v Speaker 3>performance has been quite good, it's partially because the alpha

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<v Speaker 3>that is being given by the market is quite good.

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<v Speaker 1>I think it's interesting that John was talking about the

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<v Speaker 1>FED and you talk about the international sphere, and I

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<v Speaker 1>think that that's really telling about what people are looking

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<v Speaker 1>to for that alpha, for that incremental extra yield. Are

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<v Speaker 1>those Japanese investors staying in Japan right now and not

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<v Speaker 1>coming to the US for treasures even if the FED

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<v Speaker 1>cuts No.

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<v Speaker 3>I think they're very big investors in US asset. And remember,

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<v Speaker 3>one of the opportunity everyone has is to buy foreign

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<v Speaker 3>assets and swap them back into dollars or swap them

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<v Speaker 3>back into yen and so on and so forth. And

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<v Speaker 3>so you can actually buy synthetic credit. You can buy

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<v Speaker 3>synthetic dollar exposure by for US investors buying, for example,

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<v Speaker 3>JGB and setting forward the yen in two dollar and

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<v Speaker 3>having a different credit risk with JGB than you have

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<v Speaker 3>with US dollar. And so there's a lot to do

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<v Speaker 3>now we do that a lot in short term and

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<v Speaker 3>longer term in terms of adding alpha. But all the

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<v Speaker 3>time you can do this sort of transaction and sort

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<v Speaker 3>of mitigate your exposure or increase your exposure, or have

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<v Speaker 3>different risk profile.

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<v Speaker 1>That's a much smarter way of looking at it. I'm

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<v Speaker 1>looking at this sort of a blunt instrument. So dumb,

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<v Speaker 1>do you like international more than the United That's really

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<v Speaker 1>a wonderful once it.

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<v Speaker 3>Has an enormous amount of money to put to work,

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<v Speaker 3>and has is a nation of savers, and so there's

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<v Speaker 3>a you know the reason. The thing that I always

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<v Speaker 3>say is you need to put your money somewhere, and

0:10:27.840 --> 0:10:30.000
<v Speaker 3>the reality is the US is the only place where

0:10:30.000 --> 0:10:33.920
<v Speaker 3>you can actually put scale and when you want a thing.

0:10:34.000 --> 0:10:37.080
<v Speaker 3>For example, of the Australian problem, there was a whole

0:10:37.080 --> 0:10:41.040
<v Speaker 3>delegation last week from the UN from Australia. They need

0:10:41.080 --> 0:10:43.400
<v Speaker 3>to move capital all the way from Australia because they

0:10:43.440 --> 0:10:45.760
<v Speaker 3>are a nation of savers and the Australian market is

0:10:45.760 --> 0:10:47.240
<v Speaker 3>not big enough for them, and so they need to

0:10:47.240 --> 0:10:47.679
<v Speaker 3>pivot too.

0:10:47.800 --> 0:10:49.439
<v Speaker 2>For a long time, Japan had to do the same thing.

0:10:49.559 --> 0:10:51.400
<v Speaker 2>They didn't have to yield. To your point, the story

0:10:51.480 --> 0:10:53.800
<v Speaker 2>is change one thing we're trying to track is whether

0:10:53.840 --> 0:10:56.400
<v Speaker 2>the Japanese bring the money home, whether we see this

0:10:56.480 --> 0:11:00.000
<v Speaker 2>great repatriation where I could leave markets vulnerable. What's hip

0:11:00.240 --> 0:11:02.600
<v Speaker 2>that deployed that capitt on thinking as serting European markets

0:11:02.600 --> 0:11:04.640
<v Speaker 2>to the US as well. You seeing any of that

0:11:04.679 --> 0:11:06.360
<v Speaker 2>flow story start to turn.

0:11:06.280 --> 0:11:07.160
<v Speaker 3>No, not so far.

0:11:07.480 --> 0:11:08.880
<v Speaker 2>Would you expect it to change?

0:11:09.800 --> 0:11:13.720
<v Speaker 3>Honestly not really. These things are very very slow to move.

0:11:14.480 --> 0:11:18.080
<v Speaker 3>And the reality is people keep on saving in Japan,

0:11:18.240 --> 0:11:20.560
<v Speaker 3>and so it made us be that the marginal dollar

0:11:20.679 --> 0:11:24.320
<v Speaker 3>goes into JGB But the credit markets are very underdeveloped,

0:11:24.600 --> 0:11:27.040
<v Speaker 3>and if you want to buy, for example, cigole exposure,

0:11:27.800 --> 0:11:29.480
<v Speaker 3>you much better off going to the US.

0:11:29.679 --> 0:11:32.560
<v Speaker 2>The conversation we had back in April was maybe the

0:11:32.600 --> 0:11:35.600
<v Speaker 2>decline of US exceptionalism. The money was going to leave,

0:11:35.800 --> 0:11:38.600
<v Speaker 2>was going to go outsewhere. I want to understand where

0:11:38.640 --> 0:11:41.240
<v Speaker 2>you are now six months later? What did you see

0:11:41.240 --> 0:11:43.720
<v Speaker 2>at the time in April? Did we start to see

0:11:43.720 --> 0:11:47.400
<v Speaker 2>that decay click into US exceptionalism and our way back

0:11:47.400 --> 0:11:49.000
<v Speaker 2>to where we were at the start of the year

0:11:49.080 --> 0:11:50.120
<v Speaker 2>just six months later?

0:11:50.360 --> 0:11:54.319
<v Speaker 3>So I think we were dollar underweighted. We literally just

0:11:54.400 --> 0:11:58.040
<v Speaker 3>quare our for position. We're still very much like emerging

0:11:58.120 --> 0:12:02.480
<v Speaker 3>market currency. We do like Australian There's plenty to do.

0:12:02.679 --> 0:12:05.640
<v Speaker 3>But you know, there was there was a short dollar

0:12:05.679 --> 0:12:09.480
<v Speaker 3>position to be had, and you know, it moved ten percent,

0:12:09.520 --> 0:12:11.160
<v Speaker 3>and I think we decided to square our position.

0:12:11.640 --> 0:12:15.000
<v Speaker 1>You're talking a lot about rates and the era of income.

0:12:15.080 --> 0:12:16.719
<v Speaker 1>We've been talking a lot about that, just based on

0:12:16.760 --> 0:12:19.079
<v Speaker 1>the fact that yield has been higher, talking about private

0:12:19.080 --> 0:12:22.040
<v Speaker 1>investments through infrastructure, not mentioning equities. And this is a

0:12:22.040 --> 0:12:22.840
<v Speaker 1>time when people.

0:12:22.600 --> 0:12:25.120
<v Speaker 3>Are trying to fixed income. I'm a fixed in combust no, I.

0:12:25.080 --> 0:12:27.880
<v Speaker 1>Know, and you have sympathy with us, But I'm wondering

0:12:27.960 --> 0:12:32.480
<v Speaker 1>how much a higher rate regime limits future equity returns.

0:12:32.520 --> 0:12:34.440
<v Speaker 1>We used to talk about that. That was before our

0:12:34.440 --> 0:12:37.120
<v Speaker 1>three years consecutive twenty plus percent returns. I mean, at

0:12:37.160 --> 0:12:40.760
<v Speaker 1>what point will constrain the equity side of the portfolio.

0:12:41.000 --> 0:12:43.800
<v Speaker 1>Even though some people are wondering what kind of buffer

0:12:44.160 --> 0:12:45.240
<v Speaker 1>bonds really provide?

0:12:45.280 --> 0:12:47.560
<v Speaker 3>Well, the Pimco view is that equity return in the

0:12:47.640 --> 0:12:49.240
<v Speaker 3>US is going to be six percent for the next

0:12:49.240 --> 0:12:51.760
<v Speaker 3>three years or something like this. I mean, we you know,

0:12:51.800 --> 0:12:55.400
<v Speaker 3>we look at cape valuation. You know it's it's treading

0:12:55.400 --> 0:12:58.520
<v Speaker 3>at twenty eight times earnings. It looks really really high

0:12:58.520 --> 0:13:02.760
<v Speaker 3>to us. We understand the excitement about the hyperscalo, but

0:13:02.960 --> 0:13:06.480
<v Speaker 3>if you look outside of the hyperscalo, life in industrial

0:13:06.559 --> 0:13:09.280
<v Speaker 3>America isn't great. I mean, top line is not is

0:13:09.320 --> 0:13:13.160
<v Speaker 3>not is not growing. And one of the questions that

0:13:13.240 --> 0:13:15.920
<v Speaker 3>we don't know is the impact of tariff and what

0:13:16.000 --> 0:13:20.320
<v Speaker 3>will happen in corporate America in terms of how they're

0:13:20.320 --> 0:13:24.400
<v Speaker 3>going to deal with either passing on prices or diminishing

0:13:24.440 --> 0:13:26.280
<v Speaker 3>margin and so on and so forth. And we don't

0:13:26.320 --> 0:13:28.840
<v Speaker 3>know that, and so there's a whole leg of the

0:13:29.160 --> 0:13:31.400
<v Speaker 3>of the of the equation that we haven't really seen.

0:13:31.520 --> 0:13:34.200
<v Speaker 1>Stock investors have been trying to outpull each other this morning,

0:13:34.320 --> 0:13:37.360
<v Speaker 1>and Max Katner was on earlier of HSBC and he

0:13:37.480 --> 0:13:40.240
<v Speaker 1>was saying, look, he thinks that the Fed is making

0:13:40.240 --> 0:13:43.400
<v Speaker 1>a policy error by cutting more significantly, but they're along

0:13:43.480 --> 0:13:45.680
<v Speaker 1>for the ride because it's just going to inflate the

0:13:45.720 --> 0:13:48.760
<v Speaker 1>prices of hasse has significantly. They want to gain from that.

0:13:49.120 --> 0:13:50.400
<v Speaker 1>Do you agree with that assessment?

0:13:51.760 --> 0:13:56.120
<v Speaker 3>Well, I haven't. I haven't listened. I haven't listened to him,

0:13:56.160 --> 0:13:57.920
<v Speaker 3>so I would not be.

0:13:58.760 --> 0:13:59.920
<v Speaker 1>Good initial punt.

0:14:01.320 --> 0:14:01.680
<v Speaker 3>I don't.

0:14:01.720 --> 0:14:02.080
<v Speaker 2>I don't.

0:14:02.880 --> 0:14:03.280
<v Speaker 1>I don't know.

0:14:03.320 --> 0:14:03.480
<v Speaker 2>I have.

0:14:03.640 --> 0:14:06.160
<v Speaker 3>We have a lot of trust in in the FED

0:14:06.200 --> 0:14:09.720
<v Speaker 3>in terms of them doing the right thing. And I

0:14:09.760 --> 0:14:12.920
<v Speaker 3>think that the FED usually doesn't know much more than

0:14:12.920 --> 0:14:15.319
<v Speaker 3>we all do. They look at the same data and

0:14:15.440 --> 0:14:18.800
<v Speaker 3>so the decision is a very well thought out decision

0:14:18.840 --> 0:14:22.160
<v Speaker 3>where they will decide what to do with the condition

0:14:22.280 --> 0:14:25.240
<v Speaker 3>that they are being given. And if, for example, we

0:14:25.240 --> 0:14:28.240
<v Speaker 3>were to see a very bad inflation print, it would

0:14:28.280 --> 0:14:31.040
<v Speaker 3>be very difficult for them to cut Now. They may

0:14:31.200 --> 0:14:34.080
<v Speaker 3>argue that they have to look through inflation and so

0:14:34.120 --> 0:14:37.040
<v Speaker 3>and so forth, But the FED is a very rational

0:14:37.120 --> 0:14:39.040
<v Speaker 3>actor in the market, and I don't think anything is

0:14:39.040 --> 0:14:42.520
<v Speaker 3>going to change. And the same goes for the Central

0:14:42.520 --> 0:14:44.640
<v Speaker 3>Bank in the UK and the ECB and so and

0:14:44.760 --> 0:14:46.520
<v Speaker 3>so forth. And I think I think once you're in

0:14:46.520 --> 0:14:50.320
<v Speaker 3>a job, you behavior changes also in terms of how

0:14:50.360 --> 0:14:52.720
<v Speaker 3>you think about what the right thing to do is.

0:14:53.320 --> 0:14:55.680
<v Speaker 2>Even listing to the new fetcher next.

0:14:55.480 --> 0:14:58.200
<v Speaker 3>To no, I'm just I'm just saying it's it's it's

0:14:58.240 --> 0:15:01.080
<v Speaker 3>like being a Supreme Court justice. You know, it's a

0:15:01.200 --> 0:15:03.200
<v Speaker 3>very important job and I think people take their job

0:15:03.320 --> 0:15:03.880
<v Speaker 3>very seriously.

0:15:04.360 --> 0:15:06.280
<v Speaker 2>It's a good change. Next year there's going to be

0:15:06.320 --> 0:15:08.480
<v Speaker 2>a new FED chair. Do you expect to be to

0:15:08.480 --> 0:15:11.480
<v Speaker 2>see any daylight between a FED chair selected by appointed

0:15:11.520 --> 0:15:14.520
<v Speaker 2>by this White House and Chairman J. Powell and his

0:15:14.560 --> 0:15:15.360
<v Speaker 2>current leadership.

0:15:16.040 --> 0:15:18.360
<v Speaker 3>Do you know I was reflecting on this and what

0:15:18.440 --> 0:15:21.520
<v Speaker 3>we're talking about this. I mean, every single FED share

0:15:21.560 --> 0:15:26.920
<v Speaker 3>has been to some degree of political appointee. And you know,

0:15:27.280 --> 0:15:30.080
<v Speaker 3>there's been a history of very good FED chair since

0:15:30.800 --> 0:15:35.280
<v Speaker 3>the Burns and the Nixon presidency. And I see no

0:15:35.320 --> 0:15:36.760
<v Speaker 3>reason why that would change the.

0:15:36.720 --> 0:15:39.000
<v Speaker 2>List of candidates we've seen so far. We've said repeatedly,

0:15:39.480 --> 0:15:41.840
<v Speaker 2>very credible names on that list from this White House

0:15:41.840 --> 0:15:43.160
<v Speaker 2>on a treasury and it is.

0:15:43.120 --> 0:15:45.760
<v Speaker 3>It is, it is. It is important to remember that

0:15:46.120 --> 0:15:49.920
<v Speaker 3>it's in everyone's incentive to have a very credible feed

0:15:49.960 --> 0:15:53.640
<v Speaker 3>share because the market will not like a non credible feat.

0:15:53.680 --> 0:15:58.760
<v Speaker 2>Schhair you running. I was going to.

0:15:59.200 --> 0:16:00.920
<v Speaker 1>Means, yes, he's affirms.

0:16:01.520 --> 0:16:03.840
<v Speaker 2>Money wants that job, and it's going to see you.

0:16:03.920 --> 0:16:06.000
<v Speaker 2>Thank you, thank you for we do this in Newport

0:16:06.080 --> 0:16:09.280
<v Speaker 2>next time. Okay, when the weather starts to warm up

0:16:09.280 --> 0:16:13.320
<v Speaker 2>a little bit around it's very cool in the winter

0:16:13.440 --> 0:16:16.520
<v Speaker 2>turn of the year. Works for me. In a January time, Yeah,

0:16:16.640 --> 0:16:18.480
<v Speaker 2>we'll try and make that happen, all right, Money, thank

0:16:18.520 --> 0:16:21.440
<v Speaker 2>you sir, appreciate it. Money Roman there the Pimco CEO