both of those issuances will be fully expended by late 2020t. as a reminder unlike other geobonds, the city is not directly building any housing with this money. wrather we're making loans to individual homeowners. an update on our accomplishments so far from the first and second issuances, in the public housing category, construction is complete at block x. the building is now occupied. sunnidale parcel two is currently undergoing construction, expected to be completed in may of 2020. and we're working on infrastructure design for supporting 390 units at patrero and sunnidale. in the low-income housing category, construction is going on currently at 1296 shotwell, 88 broadway and 1990 fullsome. in the small sites program, which was one of the categories of spending in the low-income housing category, we have completed renovation at 28 units and 49 have been acquireded and are currently under renovation. in the middle income housing category thus far, we've issued 59 down payment assistance loans to first-time home buyers in the city. and this m

and on the page next to it, the second bond issuance. and my purpose, also, is to really probe staff. i'm fairly comfortable to have them comment on the spend of the first issuance. it is pretty all gone. there is less than $2 million there. according to their plans, there is a timeline to spend it down. in the second issuance, they are almost half way there. and we had some discussion on their expectation and how happy they are proceeding with the spend-down because they are kind of really looking forward to a third issuance early next year. so that was the type of discussion i had, and i walked away very comfortable that they have a pretty good handle on how they control their spend because prior to the second issuance, there is some discussion and concerns as to the pace of the spend after the first issuance. so i think they've addressed that, and i feel comfortable on the financial overall management. they seem to be on top of things. i just want to supplement them. >> chairwoman: thank you. we're not looking for a presentation today

of money it's clearly over private issuance of money it's here again. as the ways of the global trade got dropped are many investors are betting that cuts have turned things maybe that they think that what looks to me that early days in the global slowdown. because when nolan barly a point that can think up large to get his take on the can look for in a crisis you're about to watch the best 20 minutes of business show that money can buy let's go. ali baba has unveiled its 1st ai chip as china rapidly celebrates developing its own homegrown semiconductor industry the $1800.00 chip can cut down computing tasks that would have usually taken an hour down to just 5 minutes and it is currently being used internally within the company's business operations specifically and products search 2 personalized recommendations and advertising the company is planning to use the chip in its called competing products which so want to amazon is the company's fastest growing division ali baba's move into a i had swallowed fall away which last month unveiled its own a semi

investment grade issuance. that conversation is coming up next.his is bloomberg "real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is bloomberg "real yield." i want to head over to europe for the auction block am a we start with france according its biggest ever debt sale rating. the average yield on all four tranches fell to record lows. in corporate scum of berkshire haploid -- berkshire hathaway in the biggest from a non-japanese dealer. finally, apple joining a flood of investment great -- great issuance. the longest portion of the five-part deal with a 30 year security. yielding just over one percentage point above treasury. with me are my guests. i would love your insight into the huge week we have just had for credit issuance and your thoughts on what motivates the move beyond where yields are currently. mike: welcome back, right? normally we wade into the pool and this is straight in. august was extremely slow. a lot of that is catch-up. then there was a window of opportunity. the core market has benefited from the moving treasuries, whi

for governments to have anyway because of course before that we were all in private issuance of money so individual states would release their own currencies companies and banks would release their own currencies there were reasons why this was no good there were reasons back then and there was a huge fight about whether the united states creates its own you know sovereign issuance of money so where we are at now is kind of the you know going back to what it was like the monopoly of sovereign issuance of money is clearly over private issuance of money is here again now we are experiencing the troubles of profit if you issuance of money a lot of volatility but that's kind of normal for right now i don't think anyone really dislikes the volatility of bitcoin it's quite funny so you know we're still not on the main stage of global financial discussion but we're in the wings we're in the way it's interesting because history always repeats itself and now we are seeing that money is becoming more privatized again however the problem is that the u.s. dollar while it's not really backed by it

finally, apple joining a flood of investment great -- great issuance. the longest portion of the ive-part deal with a 30 year ecurity. yielding just over one percentage point above treasury. with me are my guests. i would love your insight into the huge week we have just had for credit issuance and your thoughts on what motivates the move beyond where yields are currently. mike: welcome back, right? normally we wade into the pool and this is straight in. august was extremely slow. a lot of that is catch-up. then there was a window of opportunity. the core market has benefited from the moving treasuries, which was somewhat interrelated, the stronger numbers we saw in terms of tweets and whatnot. the market really took advantage of that. i think it's important to note that yearover year, we are still negative off a very high level in terms of issuance. the trend is slightly lower but this has been an eye-opening experience. it tells you that companies still want to borrow -- not invest, but borrow at these low levels. jonathan: what is behind the move is

a lot of issuance in europe as well.n foreign investors look at the european corporate bond market, that is one of the few areas they can get a little bit of yield outside of the u.s. it is really sort of lots of demand for bonds globally. part of that is the u.s. corporate bond market and the need to get dollar yields. joe: in your view are the spreads that investors are being offered for this high-grade issuance adequate compensation for whatever credit risk they are taking on by going beyond treasuries? hans: i think so. the thing about most of this is it is investment grade. credit losses in investment grade tend to be very small. in the order of 10, 20 basis points per year. right now, spreads are 125 basis points, so you are certainly getting compensated for credit risk. maybe not always like liquidity risk, but certainly credit risk. if you do the wealth evaluation as a foreign investor, whether you buy the german year bummed you take -- german year bond, you take a risk. i think it looks very attractive. romaine:

there are checks and that is done right before permit issuance. if we did do something in error and we were misled, we would look into that and possibly revoke the permit if it was issued in error, were from what i see, they did provide documentation to someone at d.b.i., so at this point, i would say that the permit is valid, unless they can provide us with some documentation that it is not. it could be, indeed a civil issue as mr. sanchez said. we could ask our city attorney for an opinion on it. as for d.b.i., we also have -- there are several city attorneys that work with d.b.i. sometimes we have to go to them for an opinion on this, as well, just because the city could be party do something later on, but for now, i would say the permit is valid, i think. >> just so i understand from education, from d.b.i.'s perspective, if you are provided with a copy of an easement and provide -- and nothing authorizing from the owner of the property, that is sufficient for d.b.i.'s procedure? >> it seems to have been in this case, yes. as you see, it was in

mike: all the lousy, highly levered issuance went into the loan market.he loan market was seeing flows from clo's, bank investors. the loan market was accepting any kind of lousy deal, and then it shut down because all the money is pouring out. 30% of the loan market has gone out the door in the last year. now those issuers are trying to tap the high-yield market. the high-yield market is pushing back. yieldically, the loan market was the high your yielding part. the higher yielding part is saying we want covenants and leverage. these issuers who thought they could act as the loan market -- jonathan: it sounds counterintuitive, but when rates if it is up,, i wonder because rates are coming down on this dynamic is playing out. is that what is happening? mike: the loan market is the topsy-turvy part of the bond market. when the fed is raising rates, people want loans. when the fed is cutting rates, people avoid the loans because your coupon is going down. what did you make of that push that we have seen in the primary market? why haven't we seen that spill

one of the busiest months ever for investment grade issuance through september, busiest month of theear so far for high-yield. where are you seeing cracks in the primary market? michael: in the last couple years, all of the lousy, highly levered issuance went into the loan market. the loan market was seeing flows from clo's, bank investors. the loan market was accepting any kind of lousy deal, and then the loan market shut down because all the money is pouring out. 30% of the loan market has gone out the door in the last year. now those issuers are trying to tap the high-yield market. the high-yield market is pushing back. historically, the loan yield market was the higher-quality part and the high-yield was the riskier part. the higher yielding part is saying we want covenants and lower leverage. these issuers who thought they could access the loan market can't even get into the high-yield market. jonathan: it sounds counterintuitive, but when rates are coming up, that is one covenants were disappearing and i wonder if it is because rates are coming down on this dynamic is playing o

issuance in junk that slowed after the busiest week in more than two years.here, the majority of loans being broadly well-received. sticking with a high-yield credit market, some strong words, seeing many signs of froth. >> the most recent sign in addition to the pickup in issuance, but when you see deals, that sort of starts to make the hair on the back of my neck stand up a touch. we also see things like the spread between double b's or b's and double c's widening. one of the reason you see that late cycle as credit deteriorates, the weaker companies suffer weaker credit deterioration before some of the higher rated companies. jonathan: around the table with me is priya misra, diana amoa, and krishna memani. spreads come in, we are at the tightest, almost for the year. atmonth lows just looking yields. your thoughts and where we are at the moment? krishna: the argument for high-yield being expensive is very easy to make. yield levels are low, spread levels are tight. high-yield is not cheap by any measure. there are very few choices most investors have. if

it is mostly on par with last actually we see slowdown in credit card issuance .y: where do you see attractive sectors, especially in this part of the credit cycle? the creditpart of cycle, we think it is pretty late. we do think the consumer balance sheet is relatively healthier than corporate balance sheet, so to consumer or mortgage credit market and i think the fundamentals for the housing market is still solid. if you look at the general economic environment, the global slowdown is still continuing and the geopolitical risk just rising. as a result, you can also see the valuation is not cheap at all. if you look across the bond market, they have record issuance in september, so we do see value in the consumer and mortgage market. especially as an investor, we look at new issue market and also the secondary market. value,significant especially the seasoned vintage because they have enough cushion about price depreciation, and those have to be levered down. the newer issuance i do think that negative capacity because those bonds are new issued, so you don't hav

a point thatgo to luke brought up which was the extraordinary we can credit issuance. you have to admire the timing. $74 billion, a record. if this was the bottom temporarily in yields -- >> i remembered three weeks ago that said the same thing, companies are simple creatures when yields are low and they see that they come in and borrow. we knew this week was going to be big. we knew this month was going to be big. it's typical. it's back to school. it was less typical last month but a bunch of companies came in as well. investment grade has been a low-key big story. it is kind of boring in a way because spreads have not moved that much. yields have come down overall because treasuries have moved lower. it has been a recurring story in the background and companies keep chugging along. investors who bought in during last year selloff have a real nice returns. timing,ng about market we have a new issuance when it comes to bonds. , close to record highs. does -- is it a good time? interestingbeen an year for ipos in general. suggest confidence in the stock market. seeing

the proposed bond issuance will not require the city to pledge any of its funds to repay the bonds. a little more about the project. the project consists of a renovation of a complex, of the 104 units, 84 earn no more tha 50% than 50%. and five are affordable to households earning above 80% a.m. i. it includes significant work, including replacement of roofs, siding, and structural and dry rot repair, and replacement of electrical heating and plumbing systems. no residents will be displaced, but temporary relocation may be required in order to facilitate this significant scope. as for timeline, we plan to return to the board for bond issuance approvals in february of next year, and i behalf of the project sponsors, and third baptist gardens, thank you for your consideration here today. i'm also joined by the sponsor, representative peggy lipitor. and we would like to include the staff report and answer any questions. >> chairwoman: any questions or comments? seeing none, let's open this up for public comment. seeing none, public comment is closed. there is no b.l.a. report on this,

appealing the issuance on may 6 th, 2019 of an alteration permit. remolding the existing second floor and remodelling the kitchen, bathroom, and bedrooms. we will hear from the appellants first. >> good evening, members of the board. my name is danielle herrera, i am a native san franciscan. i'm a resident for 19 years. i was visiting the reasons why i am appealing the permit application approved on may 6th , 2019, issued by the owner the permit states that the building is three stories, however, under san francisco planning department 305, it is two units. the alteration to be done on the second floor. that is the unit where i was. the alteration work is either being done in my unit and i was not being made aware of it. the application states are two, which is a building with three or more units, however, according to d.b.i. inspection records, it indicates it as a two units building. it does not reflect those of d.b.i. permit tracking systems provided by d.b.i. states a model second floor unit one. this is what i received. d.b.i. on the first one

if the permitting procedure at the time of issuance was right. the health department is not here, but they are available to take any questions and respond through e-mail. >> thank you. >> thank you. >> mr. sanchez, anything to add? okay. is there any public comment on this item? >> well, it's kind of more interesting. my name is julie nice. i'm a professor of constitutional law at the university of san francisco. i am here because i'm an avid walker of the lions steps corridor. and i do not believe members of the public have received sufficient notice in this particular instance. i do find these issues interesting. these are issues of federalism which is a division of powers between nation, state, and local government. there are issues of due process and mootness. i want to say a few words about this in my view after having done research. the residents have it right under the law which is an application to this case, not what might have happened with any changes. the federal law established federal authority over the radiofrequency aspects of the

julian: it is dead issuance. unconventional, no question, but returns have been asset based. journal alsohe notes that spreads are a little tighter, so investors kind of like it. alix: let's get to the second-story because it kind of dovetails. wealthy families are actually stockpiling cash on recession fears. this comes from a ubs survey. sonali: something interesting is that ubs has seen this for some time now, not to mention this last time we checked them on this, their chief investment officer went negative on stocks. the negative interest rates in europe also became a much bigger issue, certainly for ubs charging their clients. and then you have others like bill gates that say no, in fact, we equities -- we invest in equities. alix: when you hear that rich people are keeping money in cash, what you think? julian: is it a positive for equities. if you look at money market assets, they've absolutely skyrocketed. it's the last two and a half years. this goes back to the psychology of rates moving higher. we thi

i will say generally they're in their third bond issuance now. and in deference to some of the availability of contractors to do work now, the issue we heard about from the previous bond report, is affecting them, too. and what they, m.t.a., are doing is trying to space out their bids, putting their contracts out to bid, so as to not be affected so adversely by the lack of available contractors. one of the problems of this nature manifested itself in the contract for the geary road improvements -- pardon me, the geary pedestrian improvements, and they got three bids, all of which were over the engineer's estimate. they regarde regarded that contract as being so important to pedestrian safety, they're going to go ahead and award it nonetheless. as a person who lives on geary and is of a certain age, i'm glad to hear they're going to do anyway. there were several contracts that i wanted to ask questions about that i didn't get into the detail on until after i had read the report. but generally speaking, we heard that there be no pending major contr