bond, had a bit more work to do? one of the big issues for us is allocations, so we can show you direct labor, but we have a very complex overhead model, and that had to be done manually. so -- >> so it sounds like you're very close to being -- to having some numbers that you can rely on. >> yes, we are. >> so hopefully, the next time you publish something on your website that's definitely that would be prior to your next hearing in front of this committee, the public will have fairly accurate data, you would have removed this footnote. >> right. but i do want to let you know that even though it says estimated, that's really out of a sense of caution on our part. the bulk of the good charges are there. it's still there they may be still a -- that they may be still a little understated. >> okay. thank you. >> and also, may i note that the quarterly report that we got from the transportation and root improvement which is primarily m.t.a., but it also had the same caveat on the financial page, so i'm hoping that we're g

the bonds would matter when the bonds, refunding bonds were issued. the other piece of the legislation is approving the form of the continuing covenant agreement, and we culled this out, it's basically allowing the airport for the first time, under certain conditions, to instead going to a public offering of the refunding bonds, to do a private placement with a bank. we did go back and talk to the office of public finance about prior approvals by this board in terms of using private placement rather than a public offering for bonds, and miss widener said some of the examples we put in our report. because of that, we do recommend approval of the legislation. >> supervisor cohen: thank you. all right. she's made a recommendation to move this forward. is there any discussion? on your part? public comment. item 8. any member of the public? no public comment. i'll make a motion to approve and send to full board with a positive recommendation. take that without objection. thank you. moving on. item 9 and 10 together, please. >> 9, resolution approving as am

bond s. 40 years, ticking up 1%.is is the first time since january we have seen moves like that. so, they are pressing ahead when it comes to stealth tapering and pretty much what we've been hearing for all these economists, this is line with thatthe boj is signaling they will be more flexible when it comes to bond purchasing. is this tapering or are they tweeting the yield curve control, to prolong the stimulus program? also, watching the treasury market, of course. treasury yields holding above that 3%. it seems like the trend lines, broken above 3%. perhaps they can finally stake there. some of the long-term drivers, we have this rate hike potentially next week. also global wages are starting to pick up. trade pressures when it comes to price and supply and those could send upward pressure when it comes to yields moving forward. and we have seen that globally, like chinese by movements, the sovereign 10-year yield hitting that for month -- four month high. itinteresting chart and seems like all that money is going

this bond program. the first bond sale was completed in march of 2017 for 174.1 million, which provides funding for all six components. in june of 2018, we completed our second bond sale, which fully funds now the a.d.f. as well as the homeless service side components. and now moving onto the next slide, i wanted to spend a few minutes to just focus on each component. this is a slide, page number four, to look at the -- so first up would be the zuckerberg general hospital building five component. in terms of the overall expenditures and encumbrances, there is an uptick since our last presentation. it's primarily driven by the award of two construction contracts total 16.1 million. -- totaling 16.1 million. and then, another accomplishment we've also received plan approval for the seismic upgrade project. this is one of our flagship or key projects on the 19 core projects. this is upgrading, doing a seismic retrofit of building five, which in my opinion could be one of the most challenging of the 19 core

an aggregate bond fund that focused on ingressive grade -- investment grade bonds.is time to get passive aggressive, where we track the shots fired between active and passive investing in one of the longest bull markets in history has investors migrating to low-cost passive funds, prompting some managers to adopt the etf wrapper. shawn mcninch advises them on that shift. the firm has $4.5 trillion under assets in custody and administration. we will get your advice on what active need to get to to get into the etf world. i want to get your thoughts on the highflying pot focused etf in the u.s.. mj changed its custodian to when bush, a newbie in the space. what does this mean, does that raise any red flags? >> i cannot speak to what the motives were. when we look at looking at etf sponsors as well as what product we want to support, a lot of considerations. we need to look at some of the legal ramifications in the regulatory process. this is a unique situation. it is not legal from a federal perspective, but in certain states, marijuana is legal. when you are launchin

dollars and some other currencies and one of those bond issues was a century bond as hundred year bond you mentioned you know argentina defaulted on its foreign currency dead about six times in the last six decades or so so on average you know you'll get a default on its foreign currency debt about once every ten years and a hundred year bond you know he can figure out how many of you false that will be before the bond matures so people bought that bond because at that time interest rates were really low in europe they were it was just zero and that bond offered a pretty good yield and so people in this toure's institutional investors particularly this i don't say we're going to chase this yield referring to by this bond and this yield you know surely the i.m.f. will step in to guarantee the bond and which the i.m.f. as i had a history of doing and that bonds out there that argentina's currency has plunged by in two days last week twenty five percent you now and about fifty percent so far this year it becomes very difficult for argentina to service its foreign currency debt and that fo

are you buying mexican bonds and bonds of other places? if so, is corporate debt, sovereigns, what are you doing? iain: we are looking for the areas we like, we like areas like mexico. we have been adding areas like that in the portfolio. we have yields up high for the year. obviously the peso has rallied a lot since nafta talks. it seems to have stabilized. an attractive yield. if you look at the hungarian yield curve, it is very steep. those yields should be anchored somewhat to what the ecb is doing. as was mentioned, the ecb is doing quantitative tightening, but they are not raising rates anytime soon. that means there will be this zero-rate interest policy across europe. that will attract investors who are looking for yield. lisa: michael, one thing i am struck by is the yield investors are able to get from emerging markets relative to u.s. high-yield corporate bonds. it is quite substantial. it perhaps has to do with the high valuations in the u.s. where do you see the value between those? michael: i know we will get into corporate c

at a group of bonds, and when you look at a group of bonds, you know, some are older than others, so the time that we -- the presentation -- the presenters will be encouraged to kind of scale back, if you will, the almost finished bonds, but for ease of overseeing and monitoring them, it makes sense to look at a bond group. peg, could you -- you maybe clarify that. >> yes, that's true. the parks bond, again, if you look at this, three different sequences being reported in the presentation, 2008 is almost spent out. the others, less so, and we'll encourage the presenters to focus their time on the things which are current. i'm not sure i respond to the comment about the -- i can respond to the comment about the parks bond in particular. there's a lot of movement there. that might be a good reason to make sure that you see them twice, but that's up to you. >> but i think that we could have further discussion szs as -- discussions as far as we could swap one bond group with another. >> yeah. i think that we, if probably -- again, there's four audits that tanya's doing this year, so if w

and you all approved the bonds. is bonds money? so you're going to have to have somebody come to our community, line by line, explain what's going on, 'cause the bottom line, you all have treated as, whoo, what can i say? i just can't go home and my grand kids, great grand kids, look me in the eye, papa, what you doing? my name is ace, i'm on the case. ain't no way we can stop this now, but we going to stop the rops. >> thank you, mr. washington. are there any other speakers for this item? seeing none, hearing none, we will close this item. [ gavel ]. >> this is actually a workshop, so i'm not sure if any commissioners have any questions. >> i have a question. >> commissioner singh has a question. >> this year, we are having a 3. -- $305 million floating bond -- >> i'm sorry, could you just speak into the microphone a little? >> yeah. there's a 300 and 5.7 million, on page 5. >> oh, of the memo -- or of the powerpoint, i'm sorry. >> oh, of the powerpoint. >> okay. >> yeah, what is all this for, is a tax exempt bond? >> it really de

two of the series of bonds is series a and series iii were designated and sold as green bonds which, as you know, it is -- we are an issuer of and we are a leader in this area of municipal findings. as you may recall from when he presented this item to you, with this sale, they have issued a terse long-term variable rate that the series a seat bonds, which are issued as a five-year put bonds. with this slide, i want to talk about the marketing effort that went into selling the bonds on the environment for the pricing. prior to the sale, we did direct outreach with respective institutional investors, including making targeted investor presentations in boston and new york, as well as one on one investor calls. posted an online internet presentation which is well viewed by investors in advance of the sale. the market environment was stable at the time of pricing. we had very strong demand for all of the bonds. they were almost four times oversubscribed with investor orders and the series c. put bonds were three times oversubscribed. we also had new investors for the two green bond serie

as you can see in recent months, ,ou see selloff in bond markets the rupee bond market in india.s a casualty out of china. once china has stability on that front, the credit spreads in yield, we think stability will spread to the rest of asia. , thebecause of the size sheer size of china's contribution to bond markets. yvonne: do you have a timeframe for that? everyone has been talking about china opening up, foreign investors going in. do you see any upside here? you were talking about the light at the end of the tunnel for the end of the year for a lot of the income fixed space. clifford: yes. leading into the third quarter of this year, as i mentioned earlier, there was a lot of concern and ensuing pessimism in regard to the next few months in the asian bond markets. as i said, because asia is so heavily weighted in favor of influence by china, what you are seeing is when china stabilizes, the rest of the market will stabilize. you see china stabilizing because come mid-july, chinese regulators start -- there more signs of them releasing news and making gestures of more easing

for approval on the terms of the bond issuance. we do recommend approval. >> president cohen: thank you. we appreciate that recommendation. i want to pivot to public comment on items 13-15. >> this is another example what i was talking about earlier. you have to stay focused. he claims 30% will be affordable housing. then when you process the applications to be turned in for a tenant to move into the building, that 30% housing affordable housing will start at an income range for people making 80, 90 to $125,000 a year. people who are in lower income, very low income brackets are not even getting the housing opportunities to apply and put in an application to be a tenant in the building. this say discriminatory practice and tricky device. we have emergency homeless problem here in canada. and you are in violation of criminal law pertaining to price fixing and price gouging. you can be put into county jail for that. is that clear? i want to put strong emphasis on t you do that all the god damn time on your housing opportunities. i'm

that makes sense because we issued five bonds last year, and three of which were new money bonds, so this year, we're spending those dollars on affordable housing and infrastructure in the trans bay. we are using $9 million more in reserve balances, because of due to the use of mission bay property tax increment. we're using slightly less in other funds than we did last year, as well as slightly less in rpfft nonadmin or property tax and that's because the other two bonds we issued, 2017-d and 2017 e resulted in a really large savings. we really reduced or debt service and therefore are using less property tax increment, leaving more fore the taxing entities, and there's a very, very small increase in rpttf admin. so this is the schedule for the rest of the rops amendment. we'll take your feedback today and incorporate it into the materials we provide to our over sight board. we'll present to them a workshop on september 10. they'll provide their feedback at that time, which we will incorporate and then return to them for their action on september 24, and then we will submit our prop

as you know, this committee has asked us to do audits of the bonds to ensure that our bond spending is in compliance with the voter mandate, and with that, we've enlisted the services of comings. and in the past year, cummings has completed five g.o. bonds, and this coming fiscal year, we'll be doing four more g.o. bonds, and we'll be performing a large performance audit at m.t.a. on their capital program delivery. in our citywide compliance program, the overall goal of that program is to look at compliance, internal controls, and benchmark against best practices. so as you can see on our slide we'll touch on processes such as purchase cards, payroll procurement cash and so on. and we're conducting audits of nonservice providers to ensure that departments are properly monitoring our nonprofit organization contracts. we are currently conducting a performance audit that spans across seven departments regarding citywide monitoring practices for nonprofit organizations, and that audit will be begun, more than likely, at the latter part of the fiscal year. we will continue with our performa

they do have sampling, they can't buy every single bond in the market.d thing is it's helping from a liquidity perspective it's been a disaster for investors. particularly high-yield. you look at hyg, j and k, they have woefully underperformed actively managed high-yield funds and there's this perception that going passive beats active and that may be true in segments of the equity market, but it's the exact opposite. spend more than 10 years since the things that come to be an d 85% of actively managed funds net of fees have beaten these things. jonathan: really good final point. i will take the opportunity to ask you quick final questions. get ready. do treasuries keep their risk mitigating characters six in the next downturn? mr. distenfeld: yes. ms. rajappa: yes. mr. memani: absolutely. jonathan: have we seen this cycle wide on treasuries versus bunds? on the 10 year maturity. mr. distenfeld: not even close. ms. rajappa: no. mr. memani: not close, but we're getting there. jonathan: i did this just for you, this final question is for you and you don't

bond yields may fall after investors see the plan.ng us now is our western european economy editor. thank you for joining us. how do you expect any immediate decisions? everybody is back from their beach vacations. they are getting down to business. there will be this meeting of the league. i don't think we expect any great decisions. there is a lot of talking to be done. we have a little more than three weeks before the budget targets have to be fixed. there is a lot more to come. manus: the devil is going to be in the details. like there is a disconnect between the finance minister and the populist leaders? minister hasnance had a very steady line, he wants to live within e.u. rules. the leaders of the populist parties have gone around with a lot of luster -- bluster. whether the sides will come together within the next three weeks remains to be seen. anna: we have been fascinated by this line from salvini, talking about his economic reforms will answer the laws of the spread. using that language, talking about spreads in bull marke

and bond yields are still stuck at 20 basis points. mr.istenfeld: in the short-term the story is the relative difference in economic outlooks. the u.s. is really strong and we might have a dollar rally to the point where it's problematic for growth but that is not the main concern of the fed at the moment. if you look at the longer term, you look at deficits that continue to be a problem in the u.s., and running very loose fiscal policy at some point, that's going to -- the chickens are coming home to roost on that and the dollar might actually suffer as a result of that. in europe, we can argue about the exact timing, but you have to expect rates to go up in the long run. that's also unsustainable. for a five basis points on 10 year bond yields is not sustainable. jonathan: you touched on something we talked about earlier this week. scenario, ace a risk-averse scenario where treasuries are the risk-free assets that people been for in a drawdown and risk assets? we really face that scenario? mr. distenfeld: we've been arguing forever that

bond yield market to european bond yield market we sold off about 20 basis points in the italian bondarket is there any level from the outside in and you look and say actually i want to start dipping my toes in there things are looking relatively cheap. >> that's a good question. we've been thinking about that the end of august the bond yield was 3.20, 3.25 that would be the first starting point. you have to look at the spread to the german bund i think with all the uncertainty in italy, something back beyond that level in august might be interesting for the italian government bond market but there are plenty of other ways to access euro yields with a 3 handle without taking the noise and risk that's going on around in italy at the moment. it would be too early for us to look at the italian bond market here, but everything has a price. if it carries on selling off it might get interesting, certainly above the august level >> how are you playing europe here italy has been an elephant in the room, a big elephant in the room for a long time but things are coming to a head now in the last

corporate government bonds or governments are actually selling bonds guaranteed to lose your money and yet there's a huge market for and of course gold price than any other currency but the u.s. dollar is at or near all time highs are make a new highs in the case of argentina venezuela all kinds of these economies that are a freefall so only against the u.s. dollar as it failed to make a new all time high but dynamics can change pretty quickly speaking of dynamics russia and china of course still accumulate massive quantities of gold and so they why they doing that david morgan well they know what's coming and so they have to do good for us dollar and the best you can have is goldman has stood this is terms with those years ago as a good charge saying good to see what's going to know whether or not they'll be a try to go directly with the chinese you want to ruin him be remains to be determined i somewhat doubt it but it could take place i think if it were to take place is going to be imminent i would say is probably at least a decade away but those are my thoughts currently subject to

rates stay low, the value of bonds is higher because the relationship of prices on bonds to rates of bonds is an inverse opposite relationship, and then stocks go up. stocks go up because you have extra money that corporations have either gotten because they've borrowed it so cheaply or because they have all this extra cash if they're banks or because they're leveraging, effective libor rowing back from the banks because the money is available. and where do you take it? you don't take it into government bonds because government bonds are paying nothing in the major countries of the world that are all participating in this exercise. you put it into stocks, riskier assets, and you create these financial bubbles throughout the world where the economies that this process was supposed to be influencing at least if not helping, in a lot of ways have become fragmented between the individuals or companies that have been recipients of this process and the ones that haven't. that's created greater inequality, greater economic anxiety. and it doesn't matter what one's political persuasion is, i

bonds have one third of the volatility equity. the risk to reward is compelling to de-risk and move into bonds. julie: good to see you, mark richard kiesel. we are talking about all things. let's check on first word news. >> in north and south carolina, it may be days for how much damage floor -- hurricane florence cause. environmental groups will have to make for floodwaters to recede. from waters are days cresting. it has killed 17 people. wilmington, north carolina has been cut off from flooding. escapese, hong kong cuts. begun.anup has in the philippines, a typhoon kills 65 people and more than 40 are missing. the storm hit the northwest farming region, destroying millions of dollars in crops. woman who has accused brett kavanaugh of sexually assaulting her decades ago has agreed to testify. her lawyer said she is willing to go before a senate judiciary committee. thecrats are asking that hearings be delayed. kavanaugh has denied the accusation, and the white house is behind him. the imf has joined in urging theresa may to rea

we are going to stay on the theme of bonds. the benchmark 10 year yield for china climbed to a two-month high in august. says now is a good time to start buying chinese sovereign bonds. joining us is tianhe ji, who is the bnp paribas global rates and affect strategist. great to have you on. why now? >> hello, this is tianhe ji in beijing. haidi: why would you go into this market now? >> actually because we think that for the economy performance , there is still a downward pressure from the internal part, so we think for the founding cost there is still some room for it to go down. especially we see government claims that lower-cost are the target, so that is why we think after the correction of bond yields, it is a good time to enter the market. haidi: are you expecting more using from the pboc? expect moreually we cuts in the remaining year. ando have four months to go we think there is still some workouts. plus, we think the pboc will maintain liquidity in the interbank market, so that is a very good condition for the long-te

debt so you see there's like almost three times as much outstanding corporate debt corporate bonds issued that's almost nine trillion dollars outstanding right now and most of it is this will be stuff right here it's all junk it's all a joke it's all going to be bailed out again or new is only good after exactly among those who are going to second to go gosh turn to some promote a little to ones just turn your back on again. zero zero zero zero zero. zero good that's ok over a sit down sit down sit down because we have a lot to talk about here and this is stuff that does not get covered over on m.s.n. b.c. or fox or any of the other news programs like c.n.n. here and this is quite remarkable to me because if you tune into the news here in the united states right now it's all like these crazy partisan politics like seemingly minor gossip and considering that we're an empire and like lots of crazy stuff is happening and this is a headline that i want to keep track of you and i have been following of course for years the warning about this and now it's starting to happen and that is breaking

is bonded but it's really a bondholder bailout it's not really about a lot of argentina itself but of those bondholders and many of them are in other countries some of the margin times themselves that buy these dollar denominated bonds to get the money out of pesos but it's spread all over in a lot of his you to show funds have this pension funds and so forth that need some yield and those are the us again to benefit from that i'm if bailout i agree with you you know that i have should should not exist sovereign country should you fall on that debt and bondholders should figure out how to how to take the losses and go on and but that's not happening we're not we're trying to create a world where sovereign bond holders and it was money. right but you know the i.m.f. lent the money to begin with now they're buying it back just like the federal reserve lends the money to begin with then it buys it back to quantitative easing these are all accounting tricks by central bankers and argentina has had a track record of the most corrupt worst most evil central bankers ever in cahoots with wall