with us to discuss is michael vimplecom doug peebles, and doug peebles, and krishna memani.et's start with michael. has at&t caught what you consider the new religion for the c-suite? michael: absolutely, telecom is the poster child right now for balance sheet religion. they are focused on deleveraging. at&t being one of the largest issuers, it's been given the mandate. ratings agencies are hovering over everyone as we speak. jonathan: i have heard this is the year of the debt diet. someone on my show said that. krishna: i think part of it was volatility in 2018. interest-rate volatility and stock market lability. -- liability. michael is right, some people got religion, but they have only gotten the first commandment. we are waiting on the other nine to come through. the point is, that volatility put a pause on the expansion of balance sheet that they were down the path of. tax reforms was a bit of a driver as well. at the end of the day, if the liquidity is available, if the market pricing of risk is relatively low, money is cheap, corporations will continue to delever. no

still with me is michael, doug peebles, and krishna memani.shna, i want to begin with you and the skipped call option on the 81 in santander in spain. how concerned are you? krishna: it is the first, so if you are a typical european investor and got into the market with certain expectations, you are disappointed, flustered. how could they do this? if you are a long-term investor in credit markets, have been doing this for a long time, this sort of thing happens all the time. we have had this with tier one's, lbo's, a company would promise all sorts of things. as an analyst, you have to expect what is the most economic thing for the issuer to do? this was, indeed, the most economic thing for the issuer to do. they are fiduciaries. jonathan: this is a market that is now maturing? doug: one great analyst in london said just that. if you look, from an economic standpoint, were they supposed to do this? yes, they were. did they know it was going to surprise the market? they probably did. i think it is a sign of a market that is maturing. not only t

krishna memani, doug peebles, michael temple sticking with me.rifting higher on the front end by about five basis points. no drama on the longer end. around 3% on a 30 year yield. coming up, the final spread. the week ahead featuring the fed minutes from the january meeting. that is next. this is bloomberg "real yield." this is bloomberg. ♪ jonathan: i'm jonathan ferro. this is bloomberg "real yield." the next week, remember, the long weekend in the u.s. means markets are closed this monday for president day. later in the week, minutes from the fomc january meeting, existing home sales, and durable goods data. still with me is michael vimplecom doug peebles, and krishna memani. krishna, i want to begin with you and he skipped call option on the -- in santander in spain. how concerned are you? the first, so if you are a typical european investor and got into the market comecertain expectations you are disappointed, flustered. how could they do this? investore a long-term in credit markets, have been doing this for a long time, this sort of thing h