betty: joining us for more insight is lisa abramowicz. en if thean that fed raises rates, given the near zero yields, it is not going to have much of an impact? lisa: first of all, let's talk about whether the fed would want to raise rates. stanley fischer spoke this week with tom keene and said, basically, the negative rates seem to be working pretty well in europe based on the data so far. they just stress tested the banks for positive possible negative rate environment. it is hard to see them coming out with a particularly hawkish statement right now, given how much credit conditions have tightened. 5 ratequal to about hikes already built into the market. high based on how much yield bonds -- first of all, the fed is excited to surprise the market by being more hawkish than they are expecting, questionable theory. second of all -- the goldman sachs and pimco think that that is wrong. they think we are underestimating the fed. lisa: and the u.s. economy, perhaps more importantly. the signs will be so overwhelming that the u.s. economy is

for more on what we could -- what it means for credit investors, we bring in lisa abramowicz, columnistor bloomberg gadfly. to i for joining us. you say we are -- thank you for joining us. you say we are moving beyond the federal reserve for cues, yet we a better-than-expected jobs it was and it seems like the traded we received. lisa: it stopped. the t--- the two-year was responsive and sells off on the expectation the fed could have the justification to raise rates at some point in 2016, and investors have gone pessimistic, so this did seem to be a reproducing -- basically bringing back, understanding maybe the fed will raise rates, but if you look at credit markets, they were not moving in lockstep, particularly investment-grade credit. typically, you would see this type of jobs report, and it would indicate momentum behind the u.s. economy. you saw actual wages increase. yet, if you look at, sort of, the measure of risk of the cbs, credit default swaps, on investment-grained bonds in the u.s., they rose to the highest level since, at least, less chu, and it, sort of, indicated peopl

joining us, lisa abramowicz from bloomberg gadfly.in perspective for us from 2008? guest: my colleague and i went around and looked at the analyst reports they are putting out in response to disclosures by the biggest u.s. banks and we tallied up the exposures -- jpmorgan, citigroup, and we came billiontally, 123 dollars of commitments that were energy related. it is bigger than the gdp of ecuador. but with respect to these bank'' books, it's not that big. it's a couple of percentage points. it looks manageable. the more they disclose, the more manageable it works. that isat amount of loans related to junk related companies? how bad are those loans? bank.it very's in a fargo's ceo came out conference call and it said the majority of their loans, $17 billion of exposure is to junk rated companies. they specified they had deep experience dealing with these companies and they have a lot of faith they would come through, there's a can see, jpmorgan aunt for morgan stanley. what is the exposure exactly? are the loans outstanding? alix: als

scarlet: let's bring in lisa abramowicz. howlook at this in terms of this affects the way people invest in bond funds. some exchange traded funds that invest in european sovereign bonds or bonds other than those in the u.s. typically charge a fee of about 0.35%. that is typical. how do you factor that in when you've got average yields that are plunging? the average yield on a five-year in germany and france and japan had all turned completely negative. if you are looking for safety, at what point are you not getting it at all? it creates a conundrum that has never really been there before for bond investors. alix: is the plunge a demand or supply issue? lisa: it is certainly both. is incredible and it been questions about whether governments can or want to issue enough securities to meet this demand. this is being driven by policies that are saying we will do whatever it takes, we will buy as many assets as we need to. even buying exchange traded funds. european central bank considering adding to stimulus and they have had a

lisa abramowicz for more context. our commentary section. e person who explains debt to us. what is going on? boys i will tell my little it was a special day for debt today. the capital markets reopened after being virtually frozen for a most two weeks. there are concerns about global turmoil and roll global growth. you are seeing the most respected companies come to the market, apple, ibm, toyota, these are the balance sheet tech companies coming out with big issuances and saying, let's take advantage, yields are still pretty low. if it is like the old adage in home finance. you can only get a mortgage if you do not need one. >> he raise an interesting point. what does apple need more money for? they have got $38 billion of cash on a balance sheet available to them. $70 billion of annual revenue. got $56 billion of debt, but it is miniscule in the theme -- scheme of things. they just pile it on. >> a monty python skit with two grandmothers and they're sitting next to each other and one just bought a car engine and she is displaying it probab

lisa abramowicz has a good story on gadfly today, talking about what she has been talking to investors about, but there are enough for -- a number of different things to pick from, including concerns about global growth and the effect on these companies. david: chesapeake energy, there , they there were rumors were denying allegations, what is the latest? julie: they said they are not pursuing bankruptcy, that they do employ that firm and have done so since 2010. was the market reassured? you can see in the halt of the their lossespopped coming out of that, but now it's down about 33.3%. that doesn't read like complete reassurance of the market, right? with a stock declining to that level? their market cap is about $1 billion. energy transfer equity is in the process of buying williams concerns, but a lot of has been expressed by analysts, traders, and investors about whether that deal would go through. energy transfer said that their cfo was the parting and might take on an advisory role for the company. that all of this uncertainty has caused those shares to tumble further. oil price

by a dear friend of mine, lisa abramowicz, and bill mcdermott. them to stick around. with me for the hour, my old boss. he will -- he is the president, a part -- a credit manager. welcome back. hello. vonnie quinn. vonnie: step -- president obama will visit a mosque near baltimore today. white house aides say it is a deliberate rebuke to republican presidential candidates who they say have islamophobia. sweeping legislation being unveiled tomorrow. traffic control system into a nonprofit corporation. many passengers from having in-flight conversations on their mobile phones. it would also force carriers to refund too late. foundcarter said a scan no signs of what the doctors found last summer. he will go ahead with the treatment next week. powered by more than 150 bureaus around the world, i am vonnie quinn. julie: an extension of futures this morning. are pointing here this morning, gathering earnings news, watching economic data. showing a larger than estimated january, andin there is limited predictability for the friday job. aretheless, inves