still with me to discuss is rachel golder, marilyn watson, and robert tipp.speaking of blackrock, the front end has been a story, the big repricing we have seen on treasuries. are we getting to the point where we are seeing that move now and we could be close to the peak? marilyn: we still like the front end of the curve. we think that it might be from here pretty well anchored. but actually if you continue to hold that, we think it is very reasonably priced in now, the number of hikes you might have. whereas i think potentially the next move could be more of a steepening, particularly if the fed does indicate it will pause its rate hiking cycle. at the front-end, you will still have a lot of cushion, you will still get some good income. even if yields go up more, you are still cushioned. whereas further up the curve, if you go to 10 or 30's, there is just no cushion. there is no question. jonathan: walk me through that, why the next big move could be a steep one and what the catalyst will be for it. marilyn: if the fed announces it will pause at some point,

my special thanks to rachel golder, marilyn watson, and p from pjmobert tip fixed income.for us this week. we will be back in new york same time, same place. friday, 1:00 in new york. 6:00 p.m. in london. for our audience worldwide, this was "bloomberg real yield." this is bloomberg tv. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. ♪ alix: saudi's oil pledge, the oil minister promising to produce as much as they can, crushing the brent curve. caterpillar craters the market. industrial raises questions on profitability. the big turnaround. will a plan to fix the rf after a 57% selloff this year. ♪ alix: i'm alix steel. welcome to "bloomberg commodities edge." it is 30

jon: joining me is rachel golder, marilyn watson, and robert tipp.hel, i want to begin with you. equity markets all over the place. junkihe junkie is to -- est part of junk is doing ok. leveraged loans are doing ok. why? rachel: you could feel equity is the beginning of the and and credit would catch down with it , or this is a flash in the pan and there will be a recovery with equity. we believe there will be a recovery. that the fundamentals of the economy are strong. you look at the underlying default rate, very benign and likely to be so for years to come. one of our strongest convictions is the energy recession of 2016-2016 really hit the reset button for corporate behavior for how the market was addressed , and gave the market a chance to heal. the quality of the market is not as dire as a lot of people have suggested. jon: you're not alone in making that point that high-yield had its moment. do you share that view? marilyn: when you look at the high-yield market, there are strong technical reasons why it is doing well. the lack of supply versu

still with me, rachel golder, marilyn watson, and robert tipp. to come to you, i raised that quote because i am wondering whether some current and former fed officials are trying to tell us something. the guiding light at the moment seems to be worries about financial assets and wobbles. robert: they are operating in a world of uncertainty. but they do know that what has ultimately has cost the average american, and even more than that, are the big downturns. the crashes, and the crashes have been caused by the bubbles. those are the ones where the bulk of society recovers slowly. instead of being very cautious. it was probably five years ago she was warning on biotech, right? i think it behooves them to kick the tires and see if anything rattles. but i think that is what will extend the expansion, not seeing the widespread access of aggressive lending versus appreciated assets, the real estate bubble, or any gigantic sector bubble, you are not seeing that but they continue to raise rates. i think in the end, that is what will be very helpful. jo

golder,th me, rachel marilyn watson, and robert tipp., i raised that wondering whether some current and former fed officials are trying to tell us something. the guiding light seems to be worries about financial wobbles. >> they are operating in a world of uncertainty. but they do know that what has ultimately cost the average downturns.e the big the crashes are caused by the bubbles. those are the ones where the slowly.society recovers it was probably five years ago she was warning on biotech, right? i think it behooves them to kick the tires and see if anything rattles. is what willhat extend the expansion, not seeing the widespread rapid lending versus appreciated assets, the real estate bubble, or any gigantic sector bubble, you are not seeing that but they continue to raise rates. i think that will be helpful. jon: that is the former fed chair. current fed officials warned this week about the leveraged loan market in a sort of emphatic way. jay powell has talked about financial instabilities being the biggest risk. not so much infla

golder state warriors center demarcus cousins and our oin "abc 7 news" meteorologist drew tuma helpedo spruce up the campus with gardening, painting and other projects. they also offered words of wisdom. >> i was in these guys position at one point in my life, and i can only imagine if i was presented this opportunity to be around, you know, an nba player or a professional athlete or, you know, anybody of any type of stature. just to, you know, inspire me or motivate me. >> that's so wonderful. today's local warriors event was made possible with the help of pg&e. i saw a post from drew about, hey, he found somebody taller than him. >> you know, i was looking at s. boogie is seven feet tall. >> drew is 6'3" probably. >> i was going to say 6'4" or something. maybe he could have been in the nba if he hadn't gotten into weather. >> right. >> this is better anyway. who wants to make $100 million? he has been waiting in the wings, speaking of seven-footers, damion jones ready to spread his wings for the warriors. the new sfx: tsfx: feet shufflingc life can change in an instant. be covered w