simon bellard is here. what went wrong here? n: there is a continuation of the story we had a few weeks ago with 3rd avenue in terms of the unwind of some of the chasing incremental yield traits over the last couple years. fedperfect storm of the moving into a tightening cycle with the first 25 basis points. the decline of the commodity has pushed the parameters of risk tolerance into some of these relatedlding energy sectors. a number of these funds have put up gates to slow. numbers of investors try to take their capital out, which leads to a defensive type sector. anna: this is a story with a long tale. people have been expressing concern about this. simon: increasingly, people have recognized that at some point it might become uncomfortable. there has always been the assumption of the backstop with central banks. we've got into the first stages with the fed taking the punch bowl away. thee is that unwind of quality curve in a high-yield cycle. investors can hit their yield target. you are starting to see a little bit of this

also joining us, simon bellard. simon, friday into monday, horrible for credit. monday into tuesday, what are we looking at? simon: we are calming down. we have been looking at redemption's coming through some of these etf higher risk funds over the last several months as we approach fed liftoff potentially tomorrow evening. businesseel this there's very little buying coming in. it is like catching a falling knife at this juncture. we got very low oil prices subtle in etf's . equities are up small this morning. fairly decent at the moment. germany on the fixed income side -- jonathan: some call it a falling chainsaw. liquidity, to guys point, is it real. when you have a look at what is happening. it is the end of the year. is it real as far as you're concerned? is there a message here? charles: it is in the price, therefore it is real. there is a lack of liquidity as you get 20 end of the year. books -- as you get to the end of the year. people squaring books. clearly, investment banks have pulled back pretty heavily. that is going to tell. jonathan: it is tellin