jonathan: joining me around the table here in new york city is henry peabody, mary bowers. plus from london, a portfolio manager at algebras investments. mary, i have to begin with you to see if you disagree with your colleague. david bloom. mary: we are thinking the fed will remain on pace with the rate hikes. the one thing from a high-yield perspective -- i have been fairly cautiously optimistic on high yields from a fundamentals perspective. we were a little more cautious this summer from the valuation perspective. we repriced about 50 basis points in october, but we are starting to see concerning things bubbling from bottom up in terms of supply chain disruption and cost increases while top line is starting to slow. it feels like putting plugs in the portfolio. every sector seems to have a little bit of issues. that is keeping us, despite the repricing, still concerned. now more from the fundamentals perspective. henry: i think it is spot on. and i think a little about the inflation risks being to the upside, and we are still quite stimulative on the front end. we are ta

henry peabody, mary bowers and alberto gallo.'s give you a market check unresponsive been this week. yields shaping up as follows. up by two basis points. even with the ugly auction earlier this week's, yields up by six basis points to 340. the final spread. the week ahead featuring a fresh read and comments from draghi and powell. this is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." it is time for the final spread. we will have speeches from both jay powell and mario draghi. we have been opec meeting, key economic data from the u.s. and china, and italy will show its new budget to the european union. the list bond market is closed on monday for veterans day -- the u.s. bond market is closed on monday for veterans day. henry peabody, mary bowers and alberto gallo. can high-yield stay as it has done with this move lower? mary: as we have seen with the workings of the oil market, we cycle. mini defrost that flushed out a lot of the quality in energy. yes, there is a couple of bad actors b

joining me to discuss is henry peabody, mary bowers, and alberto gallo. ry, many people might have missed it. for leveraged loans it was the busiest month since may in october. that was october where everyone is going crazy, get the market was that busy. how? mary: they posted a small positive return in october. it outperform much of fixed income this year. clo demand has been enormous. we had over $100 billion of clo issuance and it is sucking the newest supply yield out. the technicals for high-yield have been good, despite massive outflows from the market. for now it looks like the leveraged loan space is still going to be able to have a lot of new issuance. we think it is getting frothy. it is not just the terms. there is a lot being discussed around the covenant light. frankly, we are seeing top-heavy secured cap structures. what ends up happening in the next cycle is it will erode the recovery values that typically have been high for leverage loans. at the same time we have been saying throughout the year the fundamentals look at a good for credit. w

jonathan: joining me around the table in new york city is henry peabody, mary bowers. plus, from london, portfolio manager. mary come i will begin with you to see if you disagree with your colleague. the fed are thinking will remain on pace with the rate hikes. the one thing from a high-yield perspective -- i have been cautiously optimistic on high yields from the fundamentals perspective. we were a little more cautious this summer from the valuation perspective. we repriced 50 basis points in october, but we are starting to see concerning things by the -- bubbling from bottom up in terms of supply chain disruption and cost chain increases. it feels like putting plugs in the portfolio. the sector seems to have issues. despite theing us, repricing, concerned. now more from the fundamentals perspective it -- perspective. henry: i think it is spot on. on thequite stimulative front end. we are talking about moving up to neutral, 3%. we have a ways to go. what if it pushes into the high threes and productivity stays around 1%? expansionary more policy. the yawning deficit at