george gonclaves, scott kimball, and brian rehling., lisa abramowicz and i were talking a little earlier on on bloomberg tv about conviction trades and the lack of conviction that many people have. typically, we go into a new year with a big consensus trade we can all get our hands around, but i don't see that this year, do you? brian: not yet, but january is usually a positive month. after the beating markets have taken in december, hopefully we can find some footing and start to change the sentiment a little bit. scott: i think i agree. i think that decembers can cause you to miss an opportunity in january. if you look at the fixed income marketplace, credit spreads and durations of traded punches, but the net effect is there are opportunities to investing credit, and the high-yield index is now pushing 8%. from a valuation perspective there are reasons to be constructive. jonathan: a good point, many people have complained about the federal reserve, and i've complained about the communication. but brian, many investors sent me messa

still with me, george gonclaves, scott kimball, brian rehling. let's start with where the issuance has come from and what it has meant to the broader market. what does it mean for crowding out other asset classes? george: you took the words right out of my mouth. it has been a crowding out. there is more to come next year. it's not going to end. 2019, a similar story. lower corporate issuance, largely because there is less rollovers, but equal rollovers but less overall issuance and the treasury market is not picking up a lot of that space. jon: we had em central bank governors complaining about the prospect in the spring, of that extra issuance sucking up dollar liquidity, do you still see that being a big problem? brian: sure, it is going to continue to grow. the treasury has to fund to meet the deficit, so the crowding out is a real issue. it is not going to manifest itself in terms of higher treasury yields, but it is going to manifest itself in terms of less liquidity elsewhere in the bond market. scott: i have to agree with that. the data b

with me is george gonclaves, scott kimball, and brian rehling. coming up on the program, the auction block revealing the year in issuance. what a year it has been. that's coming up next. this is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now and take a look at the numbers for issuance in 2018. been --lure year it has what a year it has been, a monster year. we start with the u.s. treasury. in the calendar year, $1.3 trillion raised in net new cash. over in corporate, high-yield issuance drying up completely. your state sales slowing to levels we have not seen since 2008 and massive outflows in high-yield fund. in leverage loans, a surge of roughly $800 billion in new loans issued, even as the price index tumbled to close the year. still with me, george gonclaves, scott kimball, brian rehling. george, let's start with where the issuance has come from and what it has meant to the broader market. how important was the big issuance we have seen from the treasury, and wh