jonathan: joining me today from blackrock's rick rieder, alongside him jeffrey rosenberg, and pablo goldberg. gents thank you for having me in , your house. >> thank you for having us. jonathan: let's begin with the federal reserve. hawkish bias from the chairman. rick: i think it definitely was hawkish tilt do it. quite frkli think it was the , best press conference from chair yellen. she was directed, committed, unwavering and quite frankly there were , questions that were distracting. she laid out the plan. this is our plan and we're sticking to it. quite frankly, some of the short-term data, she rightfully ignored. she thought about the bigger picture. she is focused much more today on financial conditions. and those have gotten easier. she was committed to this is where we are going. jonathan: last year we talked about a fed that did not stick to their forecasts, they had a credibility problem.

with us to discuss our rick reader, jeffrey rosenberg, and pablo goldberg.ng about the return of volatility. equity, fixed income, the lot, does that make a risky environment? >> i am getting in the habit of disagreeing with your premises. jonathan: i throw a premise. >> your premise is everything is rich. we are on the fixed income side. on the fixed income side it is not so much about rich or cheap. it is about are you pay for the risk -- paid for the risk? you don't get the outside, and you get a lot more downside risk. on equities, valuations change. we think equity valuations are better outside of the u.s.. the key differential is you have upside as similar to the amounts of downside you are taking. in fixed income, you don't get that. that is part of what you're hearing from the caution. spreads are at high levels, and the risk is more asymmetric. european credit is absolutely rich. it is highly affected by central bank behavior. you have negative interest rates forcing people into underwriting levels that are not economic conomic you have a non-e driv

with us to discuss from blackrock, rick rieder, jeffrey rosenberg, and pablo goldberg.ng about the return of volatility. equity, fixed income, the lot, does that make a risky environment? >> i am getting in the habit of disagreeing with your premises. jonathan: you can do that. that is the whole i throw a point. premise. >> your premise is everything is rich. we don't see everything is rich. we are on the fixed income side. on the fixed income side it is not so much about rich or cheap. it is about are you paid for the risk? the issue in next income relative to equities is you have asymmetric downside risk. don't get the upside and you get a lot more downside risk. on equities, valuations change. we think equity valuations are better in some areas outside of the u.s. the key differential is you have upside as similar to the amounts of downside you are taking. in fixed income, you don't get that. and that is part of what you're hearing and terms of the caution. we share some of the views recognizing that spreads are at high levels, and the risk is more asymmetric. jonath