of the bonds.we spent over an hour together going into more detail. a couple of things i wanted to highlight, number 1 is, as was presented today, the 2,000 bond is completed. it is done. that is great news. the 2008 is very close to being done and the 2012 bonds are on track, and it's really amazing the project -- the progress that has been made. especially as was noted before, the work being done on some of the more complicated projects such as the swimming pool areas is very complicated work and those are big changes to those facilities in san francisco. in terms of how recreation and parks has been handling the bonds, i want to highlight the fact that the problems with the s.f.p. have been overcome. there still might be lingering issues but it seems like in terms of reporting, recreation and parks has been able to take care of that which is great news and then, a couple of other items, one was in past meetings, it was presented that there was difficulties lining up contractors because of the na

bond tax rate. so while we might not get 100%, but we definitely expect a significant offset of our debt payments. >> okay. and what number are you presenting -- are you assuming that is going to be repaid? >> in terms of our interest rate? >> no, of the repayment of the loan. >> so there's -- for the market rate, it's a spread of 1% over the city's borrowing rate, and then, for the below-market rate, it's a discount to our bond rate, and we can present more information at the -- on the program at our -- our next meeting. that would be helpful. >> yeah. i think we've asked questions about this repayment and how this is affecting multiple times, and be great to understand it. >> that's a great idea. so i suppose in our next meeting, you'll give a little presentation as to how that works as to the repayment process. >> sure. and i do have my colleague, michelle here, who can probably help answer that question. >> good afternoon, commissioners. it's laid out in the 1992 proposition a, the repayment of

i think as we are at the end of this bond expenditure, almost at the end of this bond expenditure , i think that the data and the projects completed reflective what was represented to the voters. it falls squarely inside the language of the bombs. and i mentioned in the past and in other ways, i know we have a full calendar, but i think it's important to point out or i would be remiss if i didn't point out that you exceeded the goals in almost every category. you have either hit them, or exceeded the goal, even when the goals were revised because of additional -- like for street repaving, s.f. hope dollars that were not anticipated in an increase in the projected goal. that was satisfied also. when the goals walked up the, you are able to hit and reach those goals. in events that the goal wasn't to exceeded calculus certainly have each projected goal in each of these categories. and the remaining projects that are yet to be completed are all on-time and on budget, as i understand it based on our last conversations and based on the report. i wanted to recognize you and the staff at d.p

we expect different things from bonds. >> what is interesting is the correlation between stocks and bondss changing. bonds have been anchor to windward and now we are not seeing that. you need to think about your fixed income differently, it has to work harder. it is not all about duration, it is credit, country, and currency. those are sources of return. jonathan: we did experience that through october. i did not see that bid into treasuries and the 10 year and the 30 year. if i told you the size of the equity move, maybe 12 or 24 months ago you would have gotten it wrong, wouldn't you? >> now i think it would be dead right. there is a common factor driving these markets, a change in stimulus coming from the federal reserve. bonds have gotten all the wrong risks for this stage in the cycle. inflation is rising. interest rates are rising. it's the environment that will eat away at the fixed coupon you get from the market. when the bond market is expensive as it has been over the last two years, you have little protection against capital moves. investors are aware of that. once the mentali

government bond market. that's exactly right and also the russian ruble running of the gold window it happens every once in a while and it's very rare it must happen again if we don't go back to a gold standard almost immediately or hopefully a big current standard and that's why i'm so intrigued by bit corn right so we're going to get extensively into because i guess will to carry us over to a second segment but before we do politically again with japan how of all the basket cases in the world to stand out japan and italy. japan's got debt to g.d.p. of over three hundred percent. italy is part of that crumbling e.u. mass that we saw happen with grace and other countries or of those two which is the most likely to trigger the next leg of the financial crisis or is there another scenario that you see that is a more pressing. i don't know those are black swan events and i know that's. copout but japan has the ability to keep this game going forever and the reason is because they went into recession's slash dep

a there's a coffee company i believe that's floating some bonds or coupon is paid in coffee. you know this is paying income and there's nothing wrong with it there's no shame in it you know a lot of banks in china are those paid off with there's a huge demand in china for pork products but in fact it here in north carolina is chinese owners of the biggest. manufacture here and manufacture grower here in the united states so they own a lot of the production here in north carolina the agreement was struck after the company failed to repay a five hundred million yuan bond that was due i nov fifth the spread of african swine fever has caused pork demand in china plummet creating a cash on hand crisis for pork producers as of september thirtieth the company had one point three billion yuan in cash against a short term debt load of eight point four billion euro and they are big consumers of ham so at least maybe they'll put it to use they will be worth something thanks to english in debt is the role of true money hard money the only currency in the history of the world that has bee

italy offered more than $6 billion in bonds.he treasury auction they , cleared the upper end of the auction amount. the 2025 and 2028 bonds saw the lowest ratios respectively. china's biggest lender pulled an offering of dollar bonds in the united states, concerned about the trade war. i cbc has mark to three-year and a five-year floating-rate. here in the united states, dow dupont has the sixth-largest deal of 2018. they sold more than $12 billion as they prepare to split into three new companies next year. still with me, gershon distenfeld, kathleen gaffney and over in london, james athey. james, i want to get to the recent comments from the vice-chairman of the federal reserve speaking to cnbc. he said the following. "if you're in a dark room without your shoes on, the want to go slow so you don't stub your toe. data dependence makes sense right here." is the market taking this as they are about to slow down the pace of rate hikes? what did you take it as? james: i will be opposing that to be honest. obviously we are about a

eric: junk bond etf in particular.ohn, you had a different word in a column just recently based on ats lombard report about the october selloff and the potential role that the gix rebalance plays. if i remembersure exactly what it stands for, it is the division of 10 or 11 sectors which the s&p defines for the stock market. the big industrial sectors, basically, the lens through which we have all looked at them for the last 20 odd years. they decided that the telecom sector, which had become tiny, needed to be changed to the communication sector. they added a bunch of companies that really makes sense, a bunch of internet leaders, the faang stocks that we think of now, and took stocks away from technology and consumer discretionary to do it. now, that is a perfectly sensible move to make. what you saw was the etf's that were tracking tech and consumer discretionary actually had to sell their amazon, netflix, or whatever it is. they were no longer part of the index they were tracking. what you don't see is investors in

>> we han watching the bond market as well. and while stock prices have ben going d sharply bond yields have not been going down. >> right. s> as much as you might imagine. which suggeeople are -- when they get out of the stock market they are not necessarily going to bonds. probably to cash. what do you make of that. s >> i think thaart of it, bill. one of the other things we are seng maybe surprisingly is people looking for sort of what they consider safety divend stocks. we have seen that in some of the consumer staples, if you look at coke or psi with over 3% dividends and people feel are more blue chip steady, normally you see them as you say go to bonds or utilities or energy players during times like this. but with what's going on with hat's scaredies people away from that. i believe you are right. they are going to cashr what they consider to be true defensive and some of the staple stocks which held up well compared to the rest of the market recent. >> jj, always we appreciate your

bonds have been the anchor. now, we are not seeing that.o think about your fixed income differently. it's got to work a lot harder. it is not all about duration. its credit, country, currency. those are sources of return. >> we did experience after october, big gap in the equity market. way, if iy material asked you to guess the bond move 12 months or 24 months ago, you would have got it wrong? environment, i think i've got it dead right because the common factor -- exactly, sorry. the common factor driving these markets is the change in stimulus coming from the federal reserve. essentially, bonds have got all the wrong risks in this type of stage cycle. when inflation is rising, when interest rates are rising, that's exactly the environment that is going to leech away at that bond market and when the , youmarket was expanded really have very little protection against capital moves and investors are aware of that and therefore, once the mentality is shown to not be working, they will be that much more flighty. at least they have the right r

stock markets and bond markets closed. half days for equity and bond markets today. equity trading will end at 1:00 p.m. eastern time. indicatingthe move, when markets do open, we could see losses of a modest kind. nasdaq futures down a little more. meanwhile, oil taking a hit. below $54 a barrel. a weekly loss. saudi arabia signaling output may have reached a record. brexit deal draft on the future agreement. something to look forward to. we will bring you the latest and the potential stumbling blocks. oneid see sterling spike as -- as much as 1%. holding on to those gains. you from to bring italy. looking ahead to the european bond markets opening in an hour. urging dialogue with the eu. wanting to stop the back and forth. one of the deputy prime minister's saying, no cuts to key reforms. speak to the ceo of macy's. that conversation at 2:30 p.m. u.k. time. for black friday. markets in asia, juliette saly has more. trading today. japanese and indian markets closed. from wall street, we were expecting a quiet value. the asia-pacific index, down . chinese markets, pl

bond fund, therm european term bond fund, both have the same amount of allocation to bbb and below. had to ask myself, to whom are you selling it to? the other guy has it. now you have to find the new buyer. if the new buyer is going to be in the high-yield market, ok, i've got to find that analyst. they are going to look at the world differently. all of a sudden there is really not that much liquidity, but trying to time it becomes extremely difficult. it is back to andy, who says, am i paid for the risk i'm taking? jonathan: why take the credit risk, the liquidity risk when i can buy treasuries? tom: or some other high quality asset, right? where i don't have that problem. jonathan: is that the answer for you, noelle? not.e: it's we just don't think growth is going to shut down next year. there will be uncertainty. if you look at past performance, high-yield does not need 3% growth to perform well. it performs well and we're calling for 2.8%, but it performs well at a 2% growth story type year. that is very doable next year. there are uncertainties and these guys are making great

and the worst month for junk bonds since 2015. in what was once a resilient market. we begin with the big issue, a hot payrolls report. >> the strong headline number. >> a solid job report.

the bond yield, 7.84. lastly, the information technology stocks have come off, putting pressure on the indian markets, the benchmark indices at least. on a flat day of trading. manus: dani burger has the very latest on the pound. two big stories helping the pound this morning. nomura says the market should rewrite. what are we looking at? one of the biggest stories today, theresa may may have a deal to remain financial service access across the e.u. the pound rising against the dollar, 1.28. will we get to 1.29? look how bad sentiment has been. you can see it traded at nearly a two-year low, still hovering around there. as london trading kicks off, if we see the sterling gain on this news, we could see a short squeeze. i want to take you back across to asia, because we have seen sentiment really be interesting around korea, after we got those reports that export data and inflation beat expectations. the korean yields right now are trading at an extreme versus the treasury, which could put pressure on the b

. -- you would give them high-yield bonds. you explain how you invented high-yield bonds for people to get new companies off the ground, as opposed to venture in -- to traditional venture capital? michael: i would take you back to 1974. what happened in 1974, the banking system had to save itself. growth companies -- were denied capital in this period of time. therefore, once you saw the performance, the decision was, you don't want to rely on your financial institution for access to capital. so to de-risk america, to de-risk the entire system, you want to have 10,000, 100,000 institutions, like your own at carlisle, who could invest. you do not want to depend on a handful of banks. in 1998, when the asian crisis started in thailand, there were five banks that got in trouble, but they were providing the capital to everyone in the country. so to understand the future -- so if cable is the future industry, of course, it is going to be rated very low in the beginning. but if you can find the most talented people and give them cap

, there were junk bonds atthat they would sacrifice that time.idea that you would deny capital to smaller, medium businesses who were creating, at this time, 100% of all jobs, it was kind of reminding me of the nobility in england with the mercantile class. where you want to the king and said, ok, we can no longer compete with these businesses are these people, so therefore, you have to deny them access to capital. david: you left the company and started different businesses. then he came down with prostate cancer. you were told that you do not have very long to live, right? michael: it spread through my body. i actually had to lay down for almost 24 hours and think about it. i have lost 10 relatives to cancer. so i had to think, ok, what can i do it differently than they did? the first thing i decided was i would stop eating anything except fruits and vegetables. somethingthat maybe that i was eating was accelerating the growth of cancer. second, i reduced stress. i had just come out of an extensive stressful period. me versus parts of the u.s.

issue tax exempt bonds not to exceed $21 million. and again, approval of the legislation will have no fiscal impact to the city and county. a little background on california institute of integral studies, accredited, enrollment of graduate and students. and utilizing face-to-face, hybrid and online approaches. founded in 1968 by as integrational fellowship, non-profit, nondenominational, for universal religion and self-development. now comparative, and cultural anthropology, the arts. as well as bachelor degree programs. project is located in district 6. if you have any questions. appreciate that. item four is a bond up to 21 million to allow them to refinance their debt. easy. ok. public comment, item four. seeing none closed. motion to send to the full board. item five, please. >> number five, resolution approving issuance of tax exemption obligation by the california statewide aggregate principal amount not to seed 100 million to benefit the california college of the arts. >> i'm the sponsor of this legislation. thank you for hear

. >> in any slow down your going to have bonds drop pretty quickly.hen rates go up, what will happen with these highly indebted companies? >> it is a slow-moving train wreck. >> the issues we face today are significantly less economically speaking and we have faced at any point. >> corporate america has the advantage of -- at some point that comes due. >> a third of the trading in high yield is from etf's so it is at the macro level. when those decide time-out, get out of the market. there will be a world of hurt. >> you have to be concerned about any company that has a lot of debt refinancing and i do not think ge is a great roxy for the overall market. >> if you wanted to score -- and scare yourself silly, you could have done at five times and we have done that and it is no different this time. jonathan: joining us, our guests. it is great to have you with me. let's begin with you and talk about the price of the story and the size of the problem in investment grade. >> we are at the beginning. i do not see it as something systemic but we are going t

the 2025 and 2028 bonds saw the lowest ratios respectively.ulled biggest lender dollars in the united states, concerned about the trade war. here in the united states, doubt dupont have the sixth-largest deal of 2018. they sold more than $12 billion as they prepare to split into three new companies next year. still with me, gershon distenfeld, kathleen gaffney and over in london, james athey. james, i want to get to the recent comments from the vice-chairman of the federal reserve speaking to cnbc. he said the following. "if you're in a dark room without your shoes on, the want to go slow so you don't stub your toe. data dependence makes sense right here." is the market taking this as they are about to slow down the pace of rate hikes? james: i will be opposing that to be honest. we are about a broader committee than one single-member. he does take up an important position, but i'm looking to chairman powell for my signal. i have a different interpretation to that from his speech. commissioned the fact there are global headwinds but he has bee

a lot of bonds.han: i do listen to the rates, and i think it is the credit equivalent of the barn door and the horse bolting. i can't get my head around it. what is the leading indicator you should be paying attention to? tom: price. am i getting paid? am i getting paid? it is, it is price. it comes back -- from our view is, what is the value of the entity? what is the value of the business? can i come up with some valuation of this thing and get a sense of, how overleveraged it is, or it still has room it has got maneuverability? without covenance, which we seem to have gotten away from, yes, it gives the company's -- the companies flexibility up until the time they don't have it. to us, i need to be much better at valuing the business, valuing the assets. when it finally doesn't work, whenever that case is, that is all i've got because i could never have a conversation with a company beforehand and say, you know, we need to talk about your leverage. you are just going to talk about it when you're s

, there were junk bonds -- that they would sacrifice at that time.the idea that you were going to deny capital to smaller, medium businesses who were creating at this time, 100% of the all jobs, it was kind of reminded me of the nobility in england with the mercantile class. where you want to the king and said, ok, we can no longer compete with these businesses, or these people, so therefore, you have to deny them access to capital. david: you left the company and started different businesses. and then, you came down with prostate cancer. you were told that you do not have very long to live, right? michael: it spread through my body. so i actually had to lay down for almost 24 hours and think about it. i have lost 10 relatives to cancer. so i had to think, ok, what can i do differently than they did? so the first thing i decided was that i would stop eating anything except for fruits and vegetables. this idea that maybe something that it may be something that i was eating that was accelerating the growth of cancer. second, i reduced stress. i had jus

market is all financed using bonds for the fracking industry they're heavily in debt based financial industry and yet the energy industry is beholden to the big energy players like saudi arabia and so you've got a combination of politics and market share so first on the fracking business we've been saying for a while now it's not economical and what the price is at the current level is that still the case what's the prognosis for fracking here we are in denton texas which is the first state and first city to do fracking and politically what do you think could happen with the saudis and the political machinations with the price of oil mitch well i think look what's going on for fracking has never been profitable oil popped up a bit now i think you had the death of one journalist that was rather unfortunate and saudi arabia was behind it and they came up with six different stories in four days or something to try to explain that away i think the biggest problem is what people aren't addressing is saudi arabia is no friend of america saudi arabia was involved in nine eleven saudi arabia

[laughter] david: explain how you invented high-yield bonds.ichael: to de-risk america, you don't want to be dependent on banks. david: you came down with prostate cancer? michael: i lost 10 relatives. david: what is it that you did that helped to change how we finance -- michael: first you collect the data. david: do you have regrets in your financial career? michael: sure. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. david: i don't consider myself a journalist. nobody else would consider me a journalist. i began to take on the life of being an interviewer, even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? you signed the giving pledge, agreeing to give away half your money. what did your children say about that? [laughter] michael: well, it is interesting. they have been involved in our philanthropic efforts since they were young. my wife, lori, defines wealth as that she

the most for me to want to talk about very important chart this is the this is i think the ten year bond yield which has gone down for thirty seven years it looks like it's heading up you know i believe your work suggests that the bond bull market is finished yes ok so let's talk about that because this is the key metric driving the entire global economy in my view curious what you think take away tyler i agree completely this this is the single most important element of where we are today and we've dodged bullets since one thousand nine hundred forty four through all kinds of mechanisms but the real problem started in the year two thousand with alan greenspan because he responded in a way that the federal reserve had never responded before and then he passed it off to bernanke he who passed it off to young men who passed it off to powell and they're all doing the same thing which is the only thing they can do and i wrote some things recently the basic. i am in awe of what they were able to accomplish however in accomplishing those things they have left this in a much more dangerous situ

james bond doesn't get this. james bond's a hustler.ng was much closer to, like, blofeld or hugo drax, you know, those guys had lots of leisure time sitting around on hammocks figuring out how to take over the world. lot of down time in world domination. bond was a working-class --. it's what i've been missing. all right, go wide. summon the robot piranhas. where's my cocktail? ♪