's rick reader, jeffrey rosenberg, and apollo gold and berg.eighing in with some forecasts for more volatility. from new york, this is "bloomberg real yield." ♪ ♪ jonathan: this is "bloomberg real yield." from blackrock's trading floor in new york city, jeffrey going my making more headlines this week. saying the days of low volatility markets are probably numbered. if you are a traitor or speculator, you should be raising cash today. bill gross recently said that u.s. markets are at the highest risk level since before the 2008 financial crisis. with us to discuss our rick reader, jeffrey rosenberg, and pablo goldberg. talking about the return of volatility. equity, fixed income, the lot, does that make a risky environment? >> i am getting in the habit of disagreeing with your premises. jonathan: i throw a premise. >> your premise is everything is rich. we are on the fixed income side. on the fixed income side it is not so much about rich or cheap. it is about are you pay for the risk -- paid for the risk? you don't get the outside, and you get

jonathan: joining me today from blackrock's rick rieder, alongside him jeffrey rosenberg, and pablo goldberg. gents thank you for having me in , your house. >> thank you for having us. jonathan: let's begin with the federal reserve. hawkish bias from the chairman. rick: i think it definitely was hawkish tilt do it. quite frkli think it was the , best press conference from chair yellen. she was directed, committed, unwavering and quite frankly there were , questions that were distracting. she laid out the plan. this is our plan and we're sticking to it. quite frankly, some of the short-term data, she rightfully ignored. she thought about the bigger picture. she is focused much more today on financial conditions. and those have gotten easier. she was committed to this is where we are going. jonathan: last year we talked about a fed that did not stick to their forecasts, they had a credibility problem.

with us to discuss from blackrock, rick rieder, jeffrey rosenberg, and pablo goldberg.ng about the return of volatility. equity, fixed income, the lot, does that make a risky environment? >> i am getting in the habit of disagreeing with your premises. jonathan: you can do that. that is the whole i throw a point. premise. >> your premise is everything is rich. we don't see everything is rich. we are on the fixed income side. on the fixed income side it is not so much about rich or cheap. it is about are you paid for the risk? the issue in next income relative to equities is you have asymmetric downside risk. don't get the upside and you get a lot more downside risk. on equities, valuations change. we think equity valuations are better in some areas outside of the u.s. the key differential is you have upside as similar to the amounts of downside you are taking. in fixed income, you don't get that. and that is part of what you're hearing and terms of the caution. we share some of the views recognizing that spreads are at high levels, and the risk is more asymmetric. jonath

david gregory and jeffrey toobin and phil mudd and matthew rosenberg. gentlemen, we got senator warners on the intel committee. democrat. his opening comments. one paragraph is relevant. we should start the discussion there. throw up the paragraph from warner. you don't have it? all right. this is important point he makes. the than t the president appears to have threatened comey's job while telling him i need loyalty. david gregory, there will be a lot of focus on him asking comey to stop the flynn investigation. that is part of what you will hear a lot of politicians call inappropriate today. the question is what does that mean in censure or legality or illeg illegality. warner says, that means do you want to save your job. is that a fair reckoning of the question? >> i think there is no question the president created this awkward pre-text to get together and comey describes it. he indicated he wanted to stay in his role and it was if they never had that conversation. here trump is setting up a dinner with the two of them alone where they isolated and