gerry: i am with alicia levine, bny mellon chief strategist.ok at what happen this week's it creates its own problems in the financial system. companies have trouble getting credit, banks get a little more reluctant to lend to each other and others. are we seeing any signs of stress the financial market? >> yes and the action started seeing that on wednesday. what you saw was express the treasury market. the treasury market is the most liquid market globally. and when accounts need to sell, they tend to sell treasury first because it is an easy exit. always on wednesday as he saw the stockmarket crash in, but we also saw yields moving out. gerry: when yields move up and prices go down. >> so bonds and equities work to help buffer each other. they help each other and upper the downside for this is the opposite on wednesday which really made it and suggested there was a running cash, and an issue in the treasury market. so what were hearing is corporate's are having credit lines, so they can have cash to get through the air pocket that is going t

gerry: i am back with bny mellon chief strategist alicia levine.rket get through these short-term challenges that's not really going to be enough to lift the economist and give it the boost it needs to grapple with this most evil think a physical response is needed. >> you need both. you need to support the liquidity and you need to support the credit and the functioning of marketing. we expect the fed to cut another 50 or 60 basis points the next two months, but that is not really for now. that's really for later when you get the bounce back to the economy and you're going 20 grow again. you'll have so much liquidity and support to do that. the real issue is the funding market and the credit market. they are very aware of it and i think his background in financial market is very useful here. gerry: so what's been on the fiscal side cut taxes, increase spending cosmic so looks like all that is on the table. part of the message from thursday's 10% selloff, was telling washington that is time to get its act together and do something. it reminded me v

gerry: i am with alicia levine, bny mellon chief strategist.n you look at what happen this week's it creates its own problems in the financial system. companies have trouble getting credit, banks get a little more reluctant to lend to each other and others. are we seeing any signs of stress the financial market? >> yes and the action started seeing that on wednesday. what you saw was express the treasury market. the treasury market is the most liquid market globally. and when accounts need to sell, they tend to sell treasury first because it is an easy exit. always on wednesday as he saw the stockmarket crash in, but we also saw yields moving out. gerry: when yields move up and prices go down. >> so bonds and equities work to help buffer each other. they help each other and upper the downside for this is the opposite on wednesday which really made it and suggested there was a running cash, and an issue in the treasury market. so what were hearing is corporate's are having credit lines, so they can have cash to get through the air pocket that is

gerry: i am with alicia levine, bny mellon chief strategist.n you look at what happen this week's it creates its own problems in the financial system. companies have trouble getting credit, banks get a little more reluctant to lend to each other and others. are we seeing any signs of stress the financial market? >> yes and the action started seeing that on wednesday. what you saw was express the treasury market. the treasury market is the most liquid market globally. and when accounts need to sell, they tend to sell treasury first because it is an easy exit. always on wednesday as he saw the stockmarket crash in, but we also saw yields moving out. gerry: when yields move up and prices go down. >> so bonds and equities work to help buffer each other. they help each other and upper the downside for this is the opposite on wednesday which really made it and suggested there was a running cash, and an issue in the treasury market. so what were hearing is corporate's are having credit lines, so they can have cash to get through the air pocket that is

joining me for the hour, alicia chief, bny mellon strategist. what do you tell them?ing clients you have to have a view of where this is going and what the hit to the economy is here and globally. if you believe this is essentially a v-shaped hit, which is our essential scenario, so you come down quickly come , but ife is recovery you believe that, there's a price at which you can buy equities. it looks more or less like the price here is where the s&p is bouncing, stabilizing, and looking to hold support. if you go any lower than that and just take is 0% earnings game for 2020 in the u.s. for less&p, you get more or 2800. so that is your buying range over here. i think anything over 3000 feels right now that you are very optimistic, and i feel if you are a little more pessimistic, it is around 2800. but that would be the range. the market is telling you that. alix: and the bond market is telling you we are a little pessimistic right now. if you take a look at the terminal, this is the spread on the twos-tens steepening to the highest since about 2018, signaling the m

she is the chief strategist at bny mellon. regan as well.e the market has fallen 5%, 6% and the dollar that is soaring. president trump is speaking. use to assistn know, we with, as you need. i asked states to set up emergency operations centers and hospitals to activate emergency plans. they have been fully notified. we are urging hospitals to cancel all elective medical procedures. we could wave regulations to give doctors and nurses maximum responsibility to respond. telehealth is becoming a big step. it makes it a lot easier for patients and it has been working out amazingly well. we empowered states to authorize tests developed in their states and we are working to expand testing capacity. we have rebuilt that whole system. it was obsolete and it was rebuilt, and a lot of good things are happening. we are ordered 500 million and 95 masks. -- n95 masks. one major ambassador -- producer has doubled capacity. companies have quite a few unused masks, construction companies. they are going to be donating unused masks and the d

for more on the market action, joining me now are liz young, bny mellon investment management directorrket strategy, and subadra rajappa, socgen head of u.s. rates strategy. i want to start with the move we have seen in the bond market. do you need to be selling these risks? selling bonds? no. i think that longer-term, bond yields are going to gradually move lower, especially with the bazooka we are getting from global central banks on a qe front. i think we are seeing a lot of volatility in the market. high yields have risen in a very short time, but broadly speaking, while risk sentiment improves, treasury yields have to gradually grind lower. alix: does that mean when you take a look at the markets, that the liquidity issue has not yet been solved by the fed stepping in for money markets, for the primary dealers, for the commercial paper market? liz: i think it means the market is still concerned that there is a remaining liquidity issue out there, and we probably only have bad news to come for a while. both in the equity market and the bond market, there's going to continue to be a

you mentioned bny mellon, goldman sachs backstopping some of their funds. specifically, money market funds here. specifically prime funds. these are funds that invest in short-term debt, corporate debt, and investors have been yanking funds from these. instead, they are moving into funds that invest in short-term government debt, which is essentially a cash proxy. the theme here, cash is king. when you see all of these redemptions coming from these funds, you're having parent companies of these affiliate in and move to step some of that debt onto their own balance sheet to help alleviate some of the stress. it is not just these money market funds. it is also mortgage-backed securities. michael mckee mentioned that really interesting quote from tom barrack, saying that the u.s. commercial mortgage market is on the brink of collapse. not --yesterday rare is saw yesterday a rare if not unprecedented sale of mortgage backed securities. billion backt $1.2 into the market. that is an industry which has seen really breathtaking numbers of redemptions for funds, so

bny mellon investment strategist and chief strategist alicia levine is with us here in the studio. kind of thing we're dealing with as public officials try to figure out what's the best way to handle this. we were talking right before about uncertainty, more of it, i guess? >> right. headlines like this are going to negatively impact the market of course. we don't know how many of these are going to be in the next few months. with it, not just the human toll but also what happens to the businesses, to economic activity and ultimately that gets all filtered into earnings for companies and into gdp for the u.s. connell: if analysts or strategists investors could make a clear decision, in other words they knew the next x-amount of weeks or months are going to be tough, then we'll get a bounceback, obviously it will be much easier but it is kind of this piecemeal thing. we don't know, we get the feeling, there will be more closure but we don't know exactly how much. what metric do you think about using? >> you could use china or south korea as a metric. a let of people are doing that.