Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The single best idea really interesting Monday, we had a
Speaker 2: huge equity focus here, of course, with the stock market
Speaker 2: future is doing so well today, a little bit of
Speaker 2: fixed income. Thank you Jim Caron for coming in. We'll
Speaker 2: get to him in a moment. Lori Kelvisena in with
Speaker 2: RBC Capital Markets and she went up the income statement.
Speaker 2: I can't say how deficient I see out there. The
Speaker 2: earnings focus. People toss around fancy words like Brockton, who
Speaker 2: produces for us. He's got a license plate that says
Speaker 2: EBITDA on it, just to impress the financial babes. Anyways,
Speaker 2: the idea is you go up the income statement. At
Speaker 2: the top of the income statement is revenue analysis divided
Speaker 2: into price and units. Lori Kelvisena, RBC Capital Markets.
Speaker 3: You know, I can't say on that company specifically, but
Speaker 3: when I do sort of my modeling Tom and in
Speaker 3: my earnings model, the revenue line is very much a
Speaker 3: quant driven model. So we have kind of five different components,
Speaker 3: and with revenues, the two most impactful macro variables are
Speaker 3: GDP and CPI, and so we're looking at real GDP
Speaker 3: and then CPI. We break them out separately, and both
Speaker 3: of those if you take the assumptions up, it's going
Speaker 3: to goose your revenue number.
Speaker 2: Laurie kelvicin, I can't say over the weekend what it
Speaker 2: was exactly, but Atlanta GDP now looking at Q three
Speaker 2: ending September thirtieth tomorrow inflation in GDP, the GDP number
Speaker 2: is just breathtakets three point x percent, nowhere near slow down.
Speaker 2: All of that may be cap X and AI and
Speaker 2: all that, but nevertheless it's a buoyant a third quarter
Speaker 2: to begin the earnings season. Jim Keren with us with
Speaker 2: Morgan Stanley as well Jim Caron on the oddities of
Speaker 2: banks within the.
Speaker 1: Fixed SAT of space. We've been looking primarily at the
Speaker 1: high yield space and also bank loans. So bank loans
Speaker 1: are it's almost like floating rate high yield, and in
Speaker 1: some ways it's a shorter term reset. On that, what
Speaker 1: I would say is that despite the fact that we
Speaker 1: think rates are coming down, we think that short term
Speaker 1: high yield credit bank loans in particular actually have more
Speaker 1: room to appreciate in price value over time as default
Speaker 1: risks stay relatively low. A lot of people like high yield.
Speaker 1: We do too, but we also like the bank loan debt,
Speaker 1: and we also like to barbel that by owning some
Speaker 1: short term, high quality government bonds.
Speaker 2: Here's the reality, folks. Jim Karen read all twelve hundred
Speaker 2: pages of Fabosi. I skimmed each chapter. Jim Karen with
Speaker 2: Morgan Stanley. We're on podcasts nationwide. Look for Apple podcasts,
Speaker 2: Spotify and on YouTube podcasts. It's single best idea.
Speaker 1: Also wants alot in under mus