tom: we have jim keenan. explain floating-rate versus fixed-rate, and why you need to 2018?you go into jim: it is around the duration risk. fixed income has a variability of rate risk associated with it. bank runs give you credit risk that are tagged to the front end relative to what you would get in fixed income. the bank loans, the secured market is giving you a good return profile. what we talked about before is the volatility has been low. whether you are looking at loans are high-yield or emerging markets, the underlying economy at low growth, there is still huge divergence between winners and losers. that is important in having a balanced credit portfolio. tom: what is important here is the exogenous shock. be exogenous to the certitude of the market? i think they can. i think under bernanke and yellen we have had a robust environment. bonds and equities have done well. the challenges because the global economy is doing decently and because it is likely you will see inflation in developed markets gradually pick up, the ability of central banks to provide that tailwind

tom: we have jim keenan. n floating-rate versus fixed-rate, and why you need to float now as you go into 2018? jim: it is around the duration risk or interest rate sensitivity. obviously fixed income has a , variability of rate risk associated to it. riskloans give you credit -- senior secured credit risk that are tied to the front end relative to what you would get in fixed income. i do think it is important -- the bank loans, the secured market is giving you a good risk-adjusted return profile. one of the things we did talk about before was the volatility has been low. but dispersion has still been high. whether you are looking at loans are high-yield or emerging markets, the underlying economy at low growth, there is still huge divergence between winners and losers. i think that is -- an important part whether you are looking at high yields or loans in having a balanced credit portfolio. tom: what is important here is the exogenous shock. ,s chairman war should -- warsh chairman taylor, chairman hubbard, ca

tom: we have jim keenan. floating-rate versus fixed-rate, and why you need to flow now as you go into 2018? jim: it is around the duration risk. fixed income has a variability of rate risk associated with it. bank runs give you credit risk -- senior secured credit risk that are tied to the front end relative to what you would get in fixed income. i do think it is important -- the bank loans, the secured market is giving you a good risk-adjusted return profile. what we talked about before is the volatility has been low. but dispersion has been hyde. -- high. whether you are looking at loans are high-yield or emerging markets, the underlying economy at low growth, there is still huge divergence between winners and losers. i think that is -- an important part whether you are looking at high yields or loans in having a balanced credit portfolio. tom: what is important here is the exogenous shock. is chairman war she, chairman taylor, chairman hubbard, can they be an exogenous shock to the certitude of the floating