WEBVTT - Markets Amid War And ESG Investing

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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<v Speaker 1>my co host Matt Miller. Every business day we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets podcast

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<v Speaker 1>called Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast bat We have a

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<v Speaker 1>really cool guest with us now. Back in and the

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<v Speaker 1>heat of the pandemic, we had KKR investing billions of

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<v Speaker 1>dollars and credit strategies as most investors had dipped out.

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<v Speaker 1>Now a person familiar tells me KKR invested more than

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<v Speaker 1>five billion dollars in the last couple of months. Joining

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<v Speaker 1>us now to talk about what KKR is doing is

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<v Speaker 1>a director at the company tall reback. Thank you so

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<v Speaker 1>much for joining us. Tell what are you buying right now?

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<v Speaker 1>And why are you able to step in when others

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<v Speaker 1>are stepping out? He needs a lot of great opportunities

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<v Speaker 1>being created, you know, albeit on the Vaultwible backdrop, and

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<v Speaker 1>you know, we're starting to think that Hi, You'll is

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<v Speaker 1>getting more attractives are in high quality pockets. Senior secured

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<v Speaker 1>loan paper, there's a lot of interesting dispersion also being created,

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<v Speaker 1>I would say interest sector, and you know, from an

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<v Speaker 1>inflationary perspective, we've already known about that for quite some time.

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<v Speaker 1>So we've been really looking at durability of cash flows

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<v Speaker 1>really using that as our true north and credit and

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<v Speaker 1>downside protection as we look across the spectrum on what

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<v Speaker 1>we want to lean into right now, what do you

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<v Speaker 1>expect the FED to do? Um, And especially given your

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<v Speaker 1>affiliation with the FED, I mean, you've you've got some

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<v Speaker 1>really deep knowledge of how how they work. But they're

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<v Speaker 1>in a difficult place right now because they're going to

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<v Speaker 1>have to fight inflation and yet um, there are worries

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<v Speaker 1>about slowing growth. Absolutely, you know, I think our base

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<v Speaker 1>cases that the FED has to continue to tighten again.

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<v Speaker 1>We think that's something that the market has priced in

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<v Speaker 1>and it should have been on investors minds for some time,

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<v Speaker 1>but that we don't see a way that they can

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<v Speaker 1>pivot away from that, you know, given all of the

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<v Speaker 1>moving parts in the market. So we do foresee the

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<v Speaker 1>rate types taking place as that continues to unfold, making

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<v Speaker 1>sure that we're as flexibly toggling between six and floating

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<v Speaker 1>great assets really thinking about our portfolio construction and keeping

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<v Speaker 1>in mind all of the geopolitical issues in the backdrop.

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<v Speaker 1>When you look around you I know that you are

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<v Speaker 1>finding opportunities, but where do you find big risks and

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<v Speaker 1>the places that investors might lose a lot of money.

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<v Speaker 1>Oh it's a great question. You know. One thing that

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<v Speaker 1>we've talked about a lot at KKR. Sometimes the market

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<v Speaker 1>grapples with a concept we like to call perception versus reality,

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<v Speaker 1>And in this current chapter of the market, we think

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<v Speaker 1>duration risk is one thing to really highlight. Given the

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<v Speaker 1>FED stepping in in twenty you know, conducive monetary backsdrop

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<v Speaker 1>or borrowers or extending their liabilities, the longer end of

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<v Speaker 1>the curve could see a little bit more volatility, which

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<v Speaker 1>we actually saw in January. So really mindful of that

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<v Speaker 1>duration risk across our asset allocation. And you know, understanding

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<v Speaker 1>that what was perceived once upon a time of safe

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<v Speaker 1>for example, something like fixed income and I G that

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<v Speaker 1>that may not be the best risk adjusted return right now.

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<v Speaker 1>So going a little bit sub i G is where

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<v Speaker 1>we would play what are the effects of the war

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<v Speaker 1>tal I mean, I know geopolitical uncertainty is hard to

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<v Speaker 1>price in but now we know what Russia is going

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<v Speaker 1>to do, has done, is doing um and you can

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<v Speaker 1>see the effects of businesses around the world. Yeah, absolutely,

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<v Speaker 1>you know, first and foremost our thoughts are with people

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<v Speaker 1>of Ukraine's during this tragic and terrible time. And you know,

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<v Speaker 1>KKR is fortunate enough to have established the Kkeyre Global

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<v Speaker 1>Institute over a decade ago, led by General Petraus, and

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<v Speaker 1>we're staying very close to this and over communicating with

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<v Speaker 1>our clients and portfolio companies. But we've we've incorporated into

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<v Speaker 1>our investment process geopolitical risk. So we're being extremely thoughtful,

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<v Speaker 1>you know, intra day as the situations of our looks,

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<v Speaker 1>and quite honestly, in Europe that's closer to the unfortunate

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<v Speaker 1>conflict we could were being collective. You know, there could

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<v Speaker 1>be growth slowing there, you know, the net effects and

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<v Speaker 1>second and third derivatives of supply chain issues and commodities.

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<v Speaker 1>So we're being extremely thoughtful. UM and we'll see, but

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<v Speaker 1>we're you know, we're just staying on our toes like

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<v Speaker 1>everyone else. Yeah. Interesting, that's kind of like what me

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<v Speaker 1>and met we're talking about earlier. Even though the stock

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<v Speaker 1>market is up, that people are worried about those growth concerns.

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<v Speaker 1>I'm wondering. You know, you mentioned General for Trayas and

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<v Speaker 1>his work with KKR. How are you answering questions from clients?

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<v Speaker 1>What are the biggest things on their mind as they

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<v Speaker 1>navigate this market here and broad? Yeah? Absolutely, you know, firstly,

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<v Speaker 1>we're we're over communicating, and you know, from a business perspective,

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<v Speaker 1>we have very limited indirect exposure to begin with, really

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<v Speaker 1>in large part to our investment process, and our platform

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<v Speaker 1>is so connected and global that we're constantly cross pollinating

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<v Speaker 1>across our different disciplines. So we're just making sure we're

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<v Speaker 1>ready in the veil doable. We're taking note of every

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<v Speaker 1>angle of the market. And one thing to say is,

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<v Speaker 1>you know, we're in the market day and day out

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<v Speaker 1>at very different verticals, so we're one team is seeing

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<v Speaker 1>something where another is not. We're exchanging that information and

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<v Speaker 1>making sure everyone is consistent on the same page. By

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<v Speaker 1>the way, Nale was and I've been talking about the

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<v Speaker 1>library OI spread for the past a few days and

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<v Speaker 1>I see that you are responsible for um the firm's

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<v Speaker 1>lie or transition effort. How how is that going to go?

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<v Speaker 1>You know, what what are we going to really see

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<v Speaker 1>in a world without libor Yeah, no, you came to

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<v Speaker 1>the right person on that. So I think it's it's

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<v Speaker 1>really interesting to see the widening and o I s

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<v Speaker 1>right now, particularly because most of those quotes are really

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<v Speaker 1>coming from the panel bank, something that we call expert judgment.

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<v Speaker 1>You're not seeing a whole lot of wholesale transactions, so

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<v Speaker 1>there's a gauge on what that bank and credit risk

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<v Speaker 1>looks like. But if you look at the spots bread

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<v Speaker 1>and you look how so for has the liquid and

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<v Speaker 1>SOFA is really deep in. What we're seeing is, you know,

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<v Speaker 1>a true adoption of the life after live boar, which

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<v Speaker 1>I think is a net positive and as testament to

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<v Speaker 1>all the work being done. But it is not, you know,

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<v Speaker 1>notwithstanding something that highlights a few of the challenges we've

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<v Speaker 1>seen with live brar historically, that it can start to

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<v Speaker 1>get a bit wonky, especially in market environments like these

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<v Speaker 1>where there's lacking liquidity. Teal great having you on. Thank

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<v Speaker 1>you so much for joining us, and thanks to Chinali

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<v Speaker 1>um for for booking or tal reback their director at KKR.

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<v Speaker 1>Now I told you we're gonna talk to Will Naskovitz.

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<v Speaker 1>He's the chairman and CEO of Heartland Advisors, and UM,

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<v Speaker 1>great day to have you on, Will, thanks so much

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<v Speaker 1>for joining us. What do you think about this bounce

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<v Speaker 1>back we're seeing? Um, even after we heard UM, you know,

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<v Speaker 1>the US is going to embargo Russian oil. That's gonna

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<v Speaker 1>put some real um put put some Americans in real

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<v Speaker 1>difficulty as prices are rising. In fact, Jeff Gunlock said,

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<v Speaker 1>maybe even ten inflation. Why are we up today? Well,

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<v Speaker 1>thanks for having me. I think it's this volatility is

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<v Speaker 1>going to be with us for some time. And I'm

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<v Speaker 1>certainly not trying to diminish the significance or the gravity

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<v Speaker 1>of the situation in Ukraine, but for some perspective, I

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<v Speaker 1>think is worthwhile. And we've had hundreds of crises, you know,

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<v Speaker 1>going in, dozens of prices going back the hundred years

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<v Speaker 1>or so, and you know, typically your post the event,

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<v Speaker 1>whether it's at a war or terrorist attack or some

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<v Speaker 1>type of financial panic, the market is up. So I

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<v Speaker 1>don't know that this circumstance is going to play out

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<v Speaker 1>like that, but I do. I think it feeds the

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<v Speaker 1>should of trying to capitalize on some of the opportunities

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<v Speaker 1>that are presenting. Two investors and that's what you know,

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<v Speaker 1>we're going to continue to do at here at Hartman.

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<v Speaker 1>We're gonna continue to apply our our ten principles of

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<v Speaker 1>value investing and look at this specific risks and outlooks

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<v Speaker 1>in any particular company. I mean, what we're finding here

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<v Speaker 1>in this sell off, and this is perhaps why we're

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<v Speaker 1>seeing buying day, is that in many cases, the valuations

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<v Speaker 1>of companies have really disconnected from you know, their fundamentals

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<v Speaker 1>that they're going to be seen over over the longer term,

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<v Speaker 1>notwithstanding all the uncertainties that are out there. So what

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<v Speaker 1>are you recommending to clients? What do you do? Do

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<v Speaker 1>you buy amid the volatility or do you sit on

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<v Speaker 1>the sidelines? Well, I think you just have to be

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<v Speaker 1>aware of it, all right. You can't just be laser

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<v Speaker 1>focused on the macro and all the geopolitical. You have

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<v Speaker 1>to do that in conjunction with adhering to your process

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<v Speaker 1>and I referenced earlier us remaining focused on the specific

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<v Speaker 1>company risks and opportunities out there and looking at it

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<v Speaker 1>a case by case basis, where perhaps the valuations look

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<v Speaker 1>really compelling because the market overestimated some of these risks,

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<v Speaker 1>risks or at the very least taking a very short

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<v Speaker 1>term view. I mean, I think a good example, maybe

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<v Speaker 1>get a little more specifics on this. The health care

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<v Speaker 1>sector was not a great place to be last year.

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<v Speaker 1>We're all familiar with with COVID and all the protocols

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<v Speaker 1>and the labor challenges that really damp in the sidures

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<v Speaker 1>that companies and hospitals experience. You know, that's presenting opportunities

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<v Speaker 1>in that space here today because we think those procedures

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<v Speaker 1>come back in the evaluations aren't reflecting it. So I

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<v Speaker 1>think you just have to be very choosy, very specific

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<v Speaker 1>in your work and be you know, entrepreneurial and an

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<v Speaker 1>active investor. Here, let's get over Tom Stringfellow and ask

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<v Speaker 1>him those questions. He's the chief investment Strategies at Argent

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<v Speaker 1>Financial Group. Tom Um, thanks for joining us. We've been

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<v Speaker 1>talking about these big inflation predictions and warnings from good

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<v Speaker 1>luck and think what do you think? Well, I appreciate

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<v Speaker 1>the opportunity, and you have the ten percent number. Yeah,

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<v Speaker 1>that's kind of a scary number and it's certainly not

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<v Speaker 1>one that I'm looking at at this point in time,

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<v Speaker 1>you know, and you know, just thinking back to the

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<v Speaker 1>charts that were just mentioned, absolutely correct. Everything is is,

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<v Speaker 1>you know, it's just escalated and elevating. And I put that,

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<v Speaker 1>you know, kind of a momentum rush right now that

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<v Speaker 1>I don't think it's sustainable in inflation if you start

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<v Speaker 1>talking about ten. But I wouldn't be surprised if we

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<v Speaker 1>don't get hit with something just shy of north of

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<v Speaker 1>eight percent, you know, with this coming month. Uh, you know,

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<v Speaker 1>in terms of CPI and maybe core somewhere around six

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<v Speaker 1>and a half percent. Either way, those are still well

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<v Speaker 1>here high. With Texas Intermedia trading at a hundred and

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<v Speaker 1>seventeen dollars a barrel um. You know, yesterday it looked

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<v Speaker 1>like we were gonna get closer to one thirty. That's

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<v Speaker 1>gotta that's got either brought under control or I mean,

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<v Speaker 1>how do you see that from Texas? Well, you know,

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<v Speaker 1>good point from Texas. You know, we kind of look

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<v Speaker 1>at it, and you know, if you're a mental owner,

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<v Speaker 1>you gotta love oil. Uh, if you're driving back and forth,

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<v Speaker 1>you know, that changes the perspective. And and you know

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<v Speaker 1>there is some thought that maybe you know, these higher

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<v Speaker 1>wall prices at the pump or somewhat deflationary because it's

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<v Speaker 1>taken money away from you know, what might be spent

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<v Speaker 1>on endurables, you know, by consumers over the next several months.

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<v Speaker 1>But you know, if you believe prices are going to

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<v Speaker 1>higher in the oil business, you've got to also believe

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<v Speaker 1>that the Ukraine situation gets much much worse and continues

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<v Speaker 1>to be an absolute uh channel blocker on the oil industry.

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<v Speaker 1>And and you know that's the question. What happens over

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<v Speaker 1>there certainly has a lot of impact on how inflationary

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<v Speaker 1>we're going to be, you know, not only at the

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<v Speaker 1>at the fuel pump, but also at the grocery store.

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<v Speaker 1>You know, it's not it's really not just oil though,

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<v Speaker 1>right real quick here, I mean, how much are these

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<v Speaker 1>price increases going to float through the economy? Well, and yeah,

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<v Speaker 1>that's that's a great point. And you know, right now

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<v Speaker 1>we started to see companies uh starting to raise prices,

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<v Speaker 1>and you know, I think that's inevitable. You know, they're

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<v Speaker 1>going to have to continue trying to keep you know,

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<v Speaker 1>reasonable target margin for you know, their operations. So it

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<v Speaker 1>is definitely going to bleed through, especially you know, anything

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<v Speaker 1>that's resource based. You know, these prices are going to

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<v Speaker 1>have to flow through to the market. And you know,

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<v Speaker 1>I don't know that we have seen that kind of

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<v Speaker 1>pricing yet into the underlying financials and the into the

0:12:15.960 --> 0:12:19.920
<v Speaker 1>market itself. Investors I think are focusing on you know,

0:12:20.000 --> 0:12:23.720
<v Speaker 1>the impact on interest rates and inflation and you know,

0:12:23.760 --> 0:12:26.960
<v Speaker 1>what's that going to do based on prior history, But

0:12:27.240 --> 0:12:31.160
<v Speaker 1>I don't see that having been priced into the market. Yeah,

0:12:31.160 --> 0:12:34.400
<v Speaker 1>what we're seeing today I think is just natural for

0:12:34.440 --> 0:12:38.720
<v Speaker 1>a volatile, uncertain market. You know, we're in a pendulum

0:12:38.760 --> 0:12:41.200
<v Speaker 1>swing right now that just keeps to it seems to

0:12:42.040 --> 0:12:45.439
<v Speaker 1>you know, go from one extream to another. That's that's

0:12:45.480 --> 0:12:48.000
<v Speaker 1>how I view this. But this volatility has also given

0:12:48.080 --> 0:12:50.720
<v Speaker 1>us some great buys. Yeah, Tom, we're gonna have to

0:12:50.760 --> 0:12:52.280
<v Speaker 1>get the check back in with you later on those

0:12:52.280 --> 0:12:54.920
<v Speaker 1>buying opportunities, But appreciate your time today, Tom string Fellow,

0:12:55.080 --> 0:13:03.200
<v Speaker 1>Chief Investment Strategy, Argent Financially. Just get over to Caroline

0:13:03.200 --> 0:13:06.720
<v Speaker 1>Bresson right now, Managing director of the Open Road Alliance

0:13:07.200 --> 0:13:10.920
<v Speaker 1>and the Open Road Impact Fund. UM. Caroline, Caroline talked

0:13:10.920 --> 0:13:13.160
<v Speaker 1>to us about what exactly you do with the Open

0:13:13.240 --> 0:13:17.520
<v Speaker 1>Road Alliance. Sure, and thanks mat intionally for for having

0:13:17.559 --> 0:13:20.760
<v Speaker 1>me today. So open Road steps up at critical moments

0:13:21.000 --> 0:13:23.720
<v Speaker 1>and UM, there's some sort of delay or or there's

0:13:23.760 --> 0:13:26.920
<v Speaker 1>kind of an acceleration for an impact first company that

0:13:27.080 --> 0:13:31.120
<v Speaker 1>addressing climate change or inequality. Uh So, for example, we

0:13:31.160 --> 0:13:35.000
<v Speaker 1>actually just funded a company that provides a warning system

0:13:35.040 --> 0:13:38.640
<v Speaker 1>for air strikes against civilians. They give seven to ten

0:13:38.720 --> 0:13:41.800
<v Speaker 1>minutes warning um and and serve over two million people

0:13:41.840 --> 0:13:45.480
<v Speaker 1>across Syria and Yemen. So we're hoping Hollow Systems can

0:13:45.480 --> 0:13:49.400
<v Speaker 1>provide their services soon in Ukraine. Um. But our investment

0:13:49.480 --> 0:13:52.560
<v Speaker 1>helps them, uh, you know, accelerate their growth and continue

0:13:52.600 --> 0:13:54.920
<v Speaker 1>to keep their their impact on track when they had

0:13:54.960 --> 0:13:57.360
<v Speaker 1>some snags in their fundraising. Well that's just the thing

0:13:57.400 --> 0:14:00.040
<v Speaker 1>about impact investing. If you're if your impact invest so

0:14:00.160 --> 0:14:01.440
<v Speaker 1>you need to kind of stick in it for the

0:14:01.520 --> 0:14:06.520
<v Speaker 1>long road. What are some of the challenges along the way. Yeah, so, um,

0:14:06.559 --> 0:14:09.080
<v Speaker 1>you know, open road plays a very specific role. We

0:14:09.080 --> 0:14:12.800
<v Speaker 1>we do bridge financing. So unfortunately, UM, my dad's an economist.

0:14:12.840 --> 0:14:15.360
<v Speaker 1>So if you say, we have a very inefficient impact

0:14:15.400 --> 0:14:18.480
<v Speaker 1>investing sector where funds are committed, but they're often not

0:14:18.600 --> 0:14:22.120
<v Speaker 1>dispersed into the hands of entrepreneurs for you know, sometimes

0:14:22.160 --> 0:14:24.680
<v Speaker 1>twelve months um and so when you think about all

0:14:24.680 --> 0:14:26.920
<v Speaker 1>that red tape in particular, if you're getting an investment

0:14:26.960 --> 0:14:30.960
<v Speaker 1>from a government or something like that. Um, people, entrepreneurs

0:14:30.960 --> 0:14:32.920
<v Speaker 1>are just sitting on their hands waiting for for cash

0:14:32.960 --> 0:14:35.440
<v Speaker 1>to come in the door. So Open Road provides these

0:14:35.480 --> 0:14:38.560
<v Speaker 1>bridge loans that solve for those one time, discrete moments

0:14:38.440 --> 0:14:43.160
<v Speaker 1>of cash crunch. What does a raising rate environment mean

0:14:43.200 --> 0:14:47.480
<v Speaker 1>to you? Yeah, good question. So it's interesting. The impact

0:14:47.560 --> 0:14:51.080
<v Speaker 1>sector is a bit you know, government funds and so

0:14:51.600 --> 0:14:55.320
<v Speaker 1>I believe that rates will go up um on on

0:14:55.360 --> 0:14:57.560
<v Speaker 1>the debt side, just as as you would see in

0:14:57.680 --> 0:15:00.600
<v Speaker 1>in any financial market. However, there is a lot of

0:15:00.640 --> 0:15:04.240
<v Speaker 1>downward pressure from you know, philanthropic funds and and government

0:15:04.280 --> 0:15:06.360
<v Speaker 1>funds that might keep the cost of capital lower for

0:15:06.440 --> 0:15:09.720
<v Speaker 1>these impacts focused on entrepreneurs. Now, when you think about

0:15:09.760 --> 0:15:11.840
<v Speaker 1>kind of what's happening in the world and and the

0:15:12.000 --> 0:15:15.680
<v Speaker 1>fight over oil and the investment that might go into

0:15:15.800 --> 0:15:18.840
<v Speaker 1>energy into the United States, I mean, how does that

0:15:18.960 --> 0:15:21.080
<v Speaker 1>start to complicate a lot of the big E s

0:15:21.120 --> 0:15:27.080
<v Speaker 1>G investments that have been brewing for so long. Yeah, well,

0:15:27.120 --> 0:15:29.640
<v Speaker 1>you know, E s G is really just a framework,

0:15:29.760 --> 0:15:33.600
<v Speaker 1>and so what it does is it identifies risks up front.

0:15:33.880 --> 0:15:36.000
<v Speaker 1>It doesn't say that, you know, you should avoid it.

0:15:36.000 --> 0:15:39.280
<v Speaker 1>It means that the price should reflect the risk. Um.

0:15:39.320 --> 0:15:41.000
<v Speaker 1>But but I think you know, what's going on with

0:15:41.040 --> 0:15:43.880
<v Speaker 1>Russian oil right now really is a great moment for

0:15:43.920 --> 0:15:47.880
<v Speaker 1>green energy. And we've seen that Germany already has, you know,

0:15:48.200 --> 0:15:51.360
<v Speaker 1>UH moved up their target to five to get into

0:15:51.360 --> 0:15:53.800
<v Speaker 1>full green energy. So I'm hopeful that it'll just mean

0:15:53.840 --> 0:15:57.760
<v Speaker 1>a recommitment to getting towards those climate goals sooner. Difficult

0:15:57.760 --> 0:16:01.240
<v Speaker 1>though for the American consumer, for the everyday person here

0:16:01.360 --> 0:16:05.000
<v Speaker 1>right when you see gas prices at six seven dollars

0:16:05.000 --> 0:16:09.160
<v Speaker 1>of barrel, I have noticed that even I, UH as

0:16:09.280 --> 0:16:11.360
<v Speaker 1>as an incredible car lover, have thought, you know what,

0:16:11.400 --> 0:16:14.360
<v Speaker 1>maybe I should take the train. Um. That kind of

0:16:14.400 --> 0:16:19.240
<v Speaker 1>demand instruction is probably good for the transition, right. Yeah. Absolutely.

0:16:19.280 --> 0:16:21.320
<v Speaker 1>You know, I'm jealous of my neighbor down the streets

0:16:21.320 --> 0:16:24.320
<v Speaker 1>that bought a Tesla UM, and I think it will

0:16:24.440 --> 0:16:28.440
<v Speaker 1>just accelerate. Um. You know, the investment into UH into

0:16:28.480 --> 0:16:31.680
<v Speaker 1>electric cars, UM, the companies out there uponnding the pavement

0:16:31.720 --> 0:16:34.280
<v Speaker 1>to to raise new funds hopefully. UM. You know, the

0:16:34.360 --> 0:16:36.400
<v Speaker 1>more money they get, the quicker they can invest, the

0:16:36.400 --> 0:16:38.520
<v Speaker 1>more they can bring down costs on electric cars and

0:16:38.560 --> 0:16:41.440
<v Speaker 1>similar technologies that will hopefully show up in the hands

0:16:41.440 --> 0:16:46.000
<v Speaker 1>of consumers and into solar. Um. You know, because when

0:16:46.000 --> 0:16:49.360
<v Speaker 1>you have your neighbor probably doesn't want to be powering

0:16:49.560 --> 0:16:54.200
<v Speaker 1>his or her tesla with dirty coal electricity. Would be

0:16:54.320 --> 0:16:56.360
<v Speaker 1>much better to put solar panels on the roof and

0:16:56.400 --> 0:16:58.240
<v Speaker 1>charge it up that way. Is that something that you

0:16:58.240 --> 0:17:00.720
<v Speaker 1>think is going to pick up? Because it wasn't the

0:17:00.720 --> 0:17:03.520
<v Speaker 1>Open Road Alliance. Um, it wasn't that a big part

0:17:03.520 --> 0:17:07.440
<v Speaker 1>of the of the start of Open Road. Yeah. So

0:17:07.520 --> 0:17:10.879
<v Speaker 1>about half of our portfolio is in in renewable energy,

0:17:11.080 --> 0:17:13.480
<v Speaker 1>and UM, we just see more and more, you know,

0:17:13.560 --> 0:17:17.159
<v Speaker 1>funds being started to help accelerate that. Um. But when

0:17:17.200 --> 0:17:19.439
<v Speaker 1>you look at some states are kind of already ahead

0:17:19.440 --> 0:17:23.000
<v Speaker 1>of the curve. I think Washington State, Um, over the

0:17:23.080 --> 0:17:27.480
<v Speaker 1>energy produced is is via hyperpower. California, well over half

0:17:27.480 --> 0:17:30.960
<v Speaker 1>of the energy is solar. And so we should see that,

0:17:31.040 --> 0:17:34.160
<v Speaker 1>you know, reliance on oil coming down. Um. It just

0:17:34.200 --> 0:17:37.000
<v Speaker 1>depends on how much your state's invested in that technology

0:17:37.040 --> 0:17:40.520
<v Speaker 1>to date. On one hand, and we just have about

0:17:40.520 --> 0:17:44.320
<v Speaker 1>a minute left here. You say that it's inefficient sometimes

0:17:44.320 --> 0:17:46.760
<v Speaker 1>to invest this way, but I can really show up

0:17:46.760 --> 0:17:51.440
<v Speaker 1>in times of an emergency. How's that working now? Yeah?

0:17:51.480 --> 0:17:54.200
<v Speaker 1>You know, when we think about how these large climate

0:17:54.240 --> 0:17:57.520
<v Speaker 1>commitments are translated into impact. It's it's obvious that individual

0:17:57.560 --> 0:18:01.000
<v Speaker 1>companies must receive capital from those large commitments to get

0:18:01.000 --> 0:18:03.920
<v Speaker 1>their climate mitigating work started. You know, salaries must be paid,

0:18:03.920 --> 0:18:06.960
<v Speaker 1>inventory ordered, et cetera. And so the demand is higher

0:18:07.000 --> 0:18:09.359
<v Speaker 1>than ever for Open Road UM. You know, we are

0:18:09.400 --> 0:18:11.680
<v Speaker 1>providing our bridge loans at a at a breakneck pace,

0:18:11.760 --> 0:18:14.200
<v Speaker 1>trying to meet the demands of companies that are working

0:18:14.240 --> 0:18:18.240
<v Speaker 1>towards this climate transition. All right, really interesting stuff, Caroline,

0:18:18.240 --> 0:18:21.400
<v Speaker 1>Thanks so much for joining us, Caroline Brassan. They're managing

0:18:21.520 --> 0:18:26.120
<v Speaker 1>director of Open Road Alliance and Open Road Impact. Fun

0:18:26.240 --> 0:18:32.480
<v Speaker 1>talking to us about UM their business. Thanks for listening

0:18:32.520 --> 0:18:36.040
<v Speaker 1>to the Bloomberg Markets podcast. You can subscribe and listen

0:18:36.040 --> 0:18:40.320
<v Speaker 1>to interviews with Apple Podcasts or whatever podcast platform you prefer.

0:18:40.720 --> 0:18:44.680
<v Speaker 1>I'm Matt Miller. I'm on Twitter at Matt Miller three

0:18:45.320 --> 0:18:47.920
<v Speaker 1>on false Sweeney I'm on Twitter at pt Sweeney. Before

0:18:47.920 --> 0:18:51.080
<v Speaker 1>the podcast, you can always catch us worldwide at Bloomberg Radio.