concerned,redit is to me there's still a lot of uncertainty. currency is still continuing to be volatile because of sanctions and the like, so i would probably wait to see some stability before entering the market. >> meanwhile, in emerging markets we do have an increasing amount of flow into local currency. this is basically a huge bet that the dollar will continue to weaken. jack, d think this is still a good bet to go into local currency em? or we seeing the start of a shift year? >> still good. we are seeing really good flows into em. the fundamentals are still pretty strong. the are a lot of fundamentals that would say this is the place we should stay. >> ian? >> i would fully agree. russia has been treated very idiosyncratically. if you look at the whole broad-based complex, it has really ignored the russian story. that is because the fundamentals are so strong. you have china doing well. oil prices on the up. those high yields you're seeing in the emerging markets are looking attractive to people. >> i want to shift to specific corporati

concerned,redit is to me, we're still under a lot of uncertainty.urrency is still volatile because of sanctions. i would probably wait to see some stability before entering the market. flow increasing amount of into the local currency. this is basically a huge bet that the dollar will continue to weaken. jack, do you think that this is still a good bet to go into a local currency or are we seeing some start of a shift here? flowsre seeing really of into our funds. the fundamentals are still pretty strong. as negative.ned there are a lot of fundamentals that say this is the place you should stay. ia i was fully agree. measure has been treated very idiosyncratically. hold -- whole the broad-based comparatively, the fundamental are so strong. you have strong global growth. you have china doing well. actually, those high real yields you see a lot of the faces of the emerging markets are looking attractive to people. i would agree with that. >> i want to shift to specific corporations. general electric had been one of the beaten up children in the equity

where are you guys on high-yield .redit rachel: there are questions about technicals, fundamentals.e fundamentals side, defaults are low. it brought the average default rate up over 2%. that is very low historically. release expects the default rate to declined between now and year end. we see leverage moving up, but when you look at high-yield, what is the level of issuance and triple fees? we saw a five-year. from 2003 to 2007 where issuances were as high as 33% in 2007. right now 12% of issuance year to date. the average level in the new issuances is extreme dread there have been outflows from a high-yield asset class. 20 billion has flown out of the mutual funds. that could seem an alarming number. there is a lot of cash flow that comes out of the high-yield bond market. we see about $20 billion just this month being freed up. jonathan: morgan stanley also pointing out the maturity wall for high-yield is very dated. not imminent, not in a big way. >> negligible. we have seen the last years pushing maturities way out to the future. what is the backlog of deals that need to be fin

concerned,redit is to me, there is a lot of uncertainty.urrency is still starting to be volatile because of sanctions. i would probably wait to see some stability for entering the market. lisa: meanwhile in emerging markets yet increasing amount of flow into local currency em. this is a huge but the dollar will continue to weaken. this is aou think good bet to go into local currency em, or are we seeing perhaps a start of a shift here? jack: em is still good. we are seeing really good flows into our em funds. the fundamentals are still pretty strong and hasn't turned to get of. there's a lot of fundamentals there that's the place should stay. lisa: em, are you still quite local currency em? and what isy agree, good is that russia is being treated socratic they -- some chronically. the feeling look at the broad-based young complex, it is north of the russian story, and that is because the fundamentals are strong. . they're strong global growth and china is doing well and oil prices are on the up those high yields you see in emerging markets

they're all in the same bucket >> you screwed up the name redit. of it as one of the more open platforms. that's sort of built into the brand. is that not the case >> in this case, that's another platform i don't want to conplate two issues and the more abuse issues on these platforms let's broadly say a lot are unsafe and redit had to deal with a lot of aggressive as twitter has had to be just as facebook once they become under the. >> i fool like we are talking fought past each other but there are so many different issues here i think one is this targeting issue, mark zuckerberg, a large part of the conversation will be how users are targeted what type of data is being used the privacy, this idea, not that they're scraping data but that clients and customers areco mentionling it to retargeting, which is a big part of the business that's one piece of it the other piece fake news are people, there hate speech? is there other things? >> yeah. you can certainly weigh in on the twitter piece. i think there are a lot of different piece, twitter being a

redit what is it they are seeing in the credit numbers that they are less concerned about? couple of inputs that go into how you judge credit, but a huge driver is asset volatility because you want the price of the asset to be reliable when you are evaluating how the company will paying back obligations. when we see the stubbornly low volatility, it makes companies seem more reliable so is giving overconfidence to credit investors. matt: how do you see this issue? i think theilarly, point on volatility is a very good one. credit markets have become relatively sanguine to the risks . we have been avoiding them slowly because the rates have been inching up in america and andrs have been following strict parity. it's been taking a while. we are about to hit 3% on the 10 year. it will take something like that futures are sentiment change in the credit markets. that's probably going to be the key. matt: is something like that imminent? when you look out there, do you see it as a possibility? dani: certainly the 3% threshold is something we have been keeping an ion. -- eye on. it

already raised several billion dollars and hired several people, including john hoffman, break -- big .redit to get an $83 million bonus back from lehman at the time. he was not successful in doing. said, you court already have been paid the $83 million, you cannot get it twice. alix: are they going to poach talent from pershing square? the wall street journal reporting most investors in pershing square capital management have asked for their money back with about two thirds of the cash could be withdrawn by the end of the year being pulled. peggy: it looks like this is .nother sign -- is struggling he has not really been able to pull it together since the valeant loss where he took about a $4 billion loss. potentially at kind of a low and he has struggled to make that back. he had a good bet on nike, but this is another sign a lot of money is leaving because of the stress of losses. alix: i have a hard time feeling bad for him. david: really? alix: yeah. david: you are tough. great have you, peggy. .oming up, the viacom merger more on what i am watching, next. alix: bloomberg users, you can