lisa holmby from stratus and michael with me. it's great to have you with me. lisa, i'm not giving you a hard time because you did disclose last time iran, you did talk about the short iran. >> as you said we've had it on for a little while. it's not worked in our favor recently. when you think about the italian wing spread was. we're talk about 200, 15 basis points. now we see a populace movement beening the governing party. five-star northern league and the market doesn't seem to care. we're 130 bases on that spread. >> the market doesn't seem to care about a lot right now. i don't think it should get tiringt. it should widen out as far as the risk is pretty significant. >> what is it associated with the italian debt? >> i mean, that's a valid point. we think that if you start getting some populace muement or issuance of debts, it's going to do nothing except pick up the yields. >> the united states trade has come out. it hasn't made a massive difference. just walk me through the idea here. i guess fundamentally, you look at that spread. you have to ask, not j

is george from wells fargo, lisa holmby, and michael cannon.hael, we brought this up last week on the program, and the em pain has just continued. june 2017, argentina can come to market. access and issue a century bond. a year later they're requesting imf aid. is this an argentina issue, or do we have a broader em story where things got too frothy in terms of access to markets? >> i think the story with emerging markets right now is the rapid move higher in u.s. rates, the associated stronger dollar has caused a lot of technical volatility. it's not surprising that the argentina is going to suffer more than the other countrys that are out there. we think the fundamental story that supports emerging markets is still there. these are economies that are early in their cyclical recovery. they're growing at a faster pace than developed markets. generally supportive central bank policies and inflation. inflation, with some exceptions, that is either stable or many in cases going lower. high real yields and supportive fundamental backdrops. we liked

me to talk a little bit about emerging markets is rusnak from wells fargo investment institute, lisa holmbymike buchanan. mike, i would like to begin with you. we brought this up last week in the program. ago, june 2017, argentina could come to the market, access them quite easily an issue a century bond. a year later they're requesting imf aid. is this an ims issue, on argentina issue, or do we have a broader em story where things got too frothy in terms of access to markets? mike: i think the story with emerging markets right now is that the rapid move higher in u.s. rates is associated with a stronger dollar, and that has caused some technical volatility. it is not surprising that the highest beta play with emerging markets, argentina, will suffer more than the other countries out there. we think the fundamental story supporting emerging markets is still there. these are generally economies that are early in their cyclical recovery, growing at a faster pace than developed markets. generally suppor supportive of central bank policies. inflation with some exceptions that is either stable o