Select Language

Search

Insights

No match found

Services

No match found

Industries

No match found

People

No match found

Insights

No match found

Services

No match found

People

No match found

Industries

No match found

Pull up a Chair - High Quality Credit Spreads

FICC Podcasts November 10, 2021
FICC Podcasts November 10, 2021

 

Dan Krieter and Dan Belton discuss likely changes in the composition at the Fed including the likely next Chair and Vice Chair for Supervision. They also discuss what the Fed’s new regulatory regime might look like and its implications for credit and swap spreads.



Follow us on Apple Podcasts, Google Podcasts, Stitcher and Spotify or your preferred podcast provider.


About Macro Horizons
BMO's Fixed Income, Currencies, and Commodities (FICC) Macro Strategy group led by Margaret Kerins and other special guests provide weekly and monthly updates on the FICC markets through three Macro Horizons channels; US Rates - The Week Ahead, Monthly Roundtable and High Quality Credit Spreads.

Podcast Disclaimer

Read more

Dan Krieter:
Hello, and welcome to Macro Horizons high quality spreads for the week of November 9th. Pull up a chair. I'm your host, Dan Krieter here with Dan Belton. As we discuss the likely nominees to Fed leadership positions expected soon and what they may mean for the path of credit and swap spreads going forward.

Dan Krieter:
Each week, we offer our view on credit spreads ranging from the highest quality sectors, such as agencies in SAS to investment-grade corporates. We also focus on US dollar swap spreads and all the factors that entails including funding markets, cross-currency markets, and the transition from LIBOR to SOFR. The topics that come up most frequently in conversations with clients and listeners form the basis for each episode. So please don't hesitate to reach out to us with questions or topics you would like to hear discussed. We can be found on Bloomberg or email directly at dan.krieter, K-R-I-E-T-E-R @bmo.com. We value and greatly appreciate your input.

Speaker 2:
The views expressed here are those of the participants, not those of BMO capital markets, its affiliates or subsidiaries.

Dan Krieter:
Okay. Dan, it's been two weeks since our last high quality spreads edition of Macro Horizons here after a monthly podcast with the whole team last week. Why don't you get us caught up on the path of spreads in the past couple weeks?

Dan Belton:
Yes. So not too much to get caught up on. Spreads have been pretty range bound. So in the Bloomberg Barclays Index spreads over the past six months have been in an 11 basis point range from 80 basis points to 91 basis points. We are right in the middle of that range at 86 basis points. We've seen a little bit of spread compression. That's probably the operative theme going on in the market, but with respect to the broad credit spread indices were really bouncing around, that 11 basis point range, but even more specifically over the past couple weeks, so much narrower band of about three to four basis points.

Dan Krieter:
And a little bit about performance is probably not terribly surprising after the Fed came out. And in my view was about as dovish as they possibly could have been, particularly at a meeting where they announced the tapering of asset purchases. And obviously Treasury yields have stabilized and actually come down a bit. So giving just a little more confidence and risk sentiment here. So a little bit of out performance, not terribly surprising, but I don't think there's been anything to this point that has changed my view on credit. I still think spreads are extremely rich and likely to move wider, in the course of the next three months, at some point just migrate to a higher trading plateau, just given the backdrop with some inflationary fears. Other factors we'll talk about here on this podcast, but I guess I'll kick it to you. Has anything developed in the past couple weeks that material changed your view?

Dan Belton:
No, I think the medium term path of spreads is going to be dictated by the path of inflation. So I think if you're an investor who isn't too concerned about inflation, it might make sense to add positions here. I just think over the next few quarters, inflation is going to remain a threat. And I think there's going to be bouts of some risk off tone. I think we're going to see spreads just face a more challenging environment as there are expectations for a more hawkish path of Fed policy. Even if those expectations aren't sustained, we're just going to see more volatility and credit spreads. And then the current level, which is just a few basis points off of all time lows. Isn't really justified by that amount of volatility.

Dan Krieter:
Yeah and sure it's easy for us strategists to sit here and say like, we don't like the path of credit spreads or we don't like the outlook for spreads here in the near term. It's a lot harder in actuality to "underweight" credit. But having said that even just taking a step up in quality may make sense here, just given spread relationships across the IG spectrum. I mean, if you look at a chart of BBB spreads say compared to A or AA spreads, we are near historical tights now. Just before walking in here, I updated the chart for BBB's compared to the double AA/A index. And it was only 52 basis points. The low going back to the financial crisis was 50. So we're right at the bottom there. And that makes sense. After the compression trade, that's been sort of the theme of 2021, but even setting aside the outlook for the next few months, fundamentals haven't necessarily been supporting that.

Dan Belton:
Yeah, Dan, so despite some positive fundamentals in the market, downgrades have actually outpaced upgrades in the IG market this year. From the standpoint of face value, we've had 485 billion in face value downgraded this year within IG and 387 billion upgraded. And then within that, most of the upgrades have been concentrated from A's to AA's. Whereas there have been relatively more downgrades between the BBB and A. [inaudible 00:04:26]

Dan Krieter:
Yeah. Putting it in numbers. We've seen net upgrades from A to AA of 39 billion year-to-date and net upgrades from BBB to A of just over 10 billion. So, I mean, we're not talking massive, massive numbers here, but it's still a fundamental trend worth highlighting. I think when we combine it with our outlook for the next couple months where inflation is likely to dominate the market's attention. And if we're looking at things from an inflationary standpoint. I think you want to be toward the upper end of the credit spectrum because an inflation environment may not necessarily be a very good thing for lower rated credits.

Dan Krieter:
I mean, there certainly is an argument that a balance sheet that's more debt laid in will arguably benefit from inflation because obviously debt's not as bad of a thing when there's heavy inflation, but there's also a little sub component that I always try to keep on my radar when I'm thinking about credit. And that is the presence of zombie corporations. This was a big theme in the market last year. Obviously the "zombie metrics" have improved greatly in the past year with the recovery and corporate earnings. But still even as recently as most recent earnings in Q3, one in six, US corporations still qualifies as a "zombie" or does not have sufficient EBIT to cover interest expense in a given quarter.

Dan Belton:
Yeah. And within the IG market, that's obviously more concentrated within the BBB's. And so as you have BBB's, which are much more debt laid in all else equal than A's and AA's, there's just more rollover risk here. And if we do see inflation pick up and start to feed through on a more sustained basis to higher interest rates and wider credit spreads, that's going to pose a more fundamental risk to the lower end of the credit spectrum within IG. And when you read through some of these corporate earnings in the third quarter, a lot of the more retail or consumer goods companies, when talking about inflation, mention the pricing power that they have given the in elasticity of demand. And that's something that I think has played a big role in the strength of corporate earnings and Q3, but were the economy to start to slow down a little bit. I think some of that pricing power would dissipate and that could cause inflation to have more of a negative impact on bottom lines.

Dan Krieter:
Yeah. And so maybe cutting to the chaser, maybe this is just a bit of a more in depth way of looking at a actually relatively basic topic, which is just given the risks that we perceive on the horizon. You want to be moving up in credit or underweight credit, whatever that looks like to the individual manager, just on the expectation that we're going to have a wider trading plateau, nothing outsized here, but a more attractive opportunity to set carry positions in the new year at likely wider spreads.

Dan Krieter:
Now backing up here, Dan, I guess we should focus more near term here on just what's going on in the market these days. And we have a weird holiday coming up here on Thursday. So it's a bit of a weird week. There's not a lot going on, I would say, but there is one storyline that we might get some clarity on this week and that is who's going to be leading the Fed. We obviously have talked a few times here about some of the key positions on the Fed that need new nominations with terms expiring here. And the, obviously the big two are the chairman role, as well as the vice chair of supervision and Biden told us last week that we should expect announcements on this "fairly soon." So as we transition the conversation to this topic, why don't you just get us caught up on what the betting markets are telling us about? Who's likely to fill these seats?

Dan Belton:
Yeah, so up until last week, it seemed like Powell was the odds on favorite to be reappointed Fed chair. His odds since then have dipped a little bit as headlines came out indicating that when Brainard was at the white house, she was actually interviewing for the Fed chair position and not the vice chair for supervision. As of the recording of this podcast, Powell's odds to be reappointed Fed share, [inaudible 00:07:55] implied 69%, with Brainard taking the rest of the 31% odds implied by predicted.org.

Dan Krieter:
And 69% for Powell. That's about as low as they've gotten since mid-October when some headlines on his equity trade started making the round. So the market has lost some degree of confidence in the idea that Powell's going to be renominated chair and looking at the composition of the board. There is some reason to think that maybe Brainard would get the nod.

Dan Belton:
And even as of last Friday, Powell's odds were at 86%. So his viewed pretty near certainty that he was going to be reappointed,

Dan Krieter:
At least on my end, I'm still expecting Powell's to be renominated. I mean, we talked about this a bit on the last podcast. I think so I don't want to spend too much time here, but we talked a bit about how the Biden administration has a lot on its plate heading into the end of the year, debt ceiling, budget, not to mention the fate of whatever this social spending bill is going to look like. And Republicans have already made clear that they will support a renomination of Powell. And that's not because they love Powell because they think that any other potential chairman will be even less friendly toward conservatives if they don't support Powell. So Powell just seems like a [inaudible 00:08:59] nomination and one that won't ruffle any feathers.

Dan Krieter:
At a time when Biden's approval rating is the lowest of any president since Harry Truman, except for Donald Trump at this point in his presidency. And it just, it seems like he would not want to ruffle any feathers with this nomination and actually looking at the composition of the Federal Reserve. There's another reason to think that Powell may have a good chance of being renominated.

Dan Belton:
Yeah. So even if Powell is reappointed Fed Chair, Biden has three spots on the board that he needs to fill. If Powell is replaced with Brainard and Powell would likely step down from the board, even though he doesn't have to, it's possible that the outgoing Fed Chair could stay on the board for the remainder of his term, that would be breaking with tradition. So more likely than not, Powell would leave the Fed, leaving four open spots in the Fed board. It's pretty understafFed right now.

Dan Krieter:
And so if we are ultimately proven right, and the betting markets, their favorite currently is proven right. We'll get a renomination for Powell sometimes soon. And then I would think it'd be basically a slam dunk that Brainard is given the vice chair for supervision role. And that's where I think we should focus for the rest of this podcast because the potential for more regulation coming is one of the factors in our long term view on the market that makes us not necessarily love the level of credit spreads here. And if, and when Brainard is confirmed as the vice supervision, I think some of the wheels of regulation could start to turn rather quickly. We've seen a few reports coming out in just the past few weeks that implied that the board is sort of set for some pretty significant sweeping changes coming in financial markets once they are enacted.

Dan Krieter:
And so I think for the balance of the podcast, we can just talk about some of the main ones and what they may mean for our markets that we cover. And really, I think there are three that we should cover from a high level. And the first one is, likely reform coming from money market funds and other "non-bank financial intermediaries." The Fed has been dropping breadcrumbs on this avenue of inflation for a while here, really for the better part of the past year, after a lot of the blame for what happened in March of 2020 with the liquidity squeeze was put at the feet of money market funds and other non big financial intermediaries. So I guess let's start there. Dan, what are some of the reform options they're looking at for this sector?

Dan Belton:
Yeah, so I agree with you. I think Money Market Reform is going to be a key factor in the new regulatory regime, whoever takes over as the Fed's vice chair of supervision and the real issue with what happened in March of 2020, that the Fed had to step in to combat these redemptions that were happening with prime money market funds. So most regulation would probably focus on how to stem another "run on money market funds." One of the possible solutions that's been floated has been swing pricing, which would essentially eliminate the first mover advantage of any withdrawals for money market funds. So if at any given day X investors tried to redeem their shares, they would all redeem them at the same price so that there was no incentive to be the first one to redeem your shares.

Dan Krieter:
And further it would treat investors that stay in the funds equally as well. So it wouldn't be those that got out, get a better price and those who opt to keep their money in bear the cost of those redemptions. And this was something that we saw in acute stress last year after the 2016 Money Market Reforms actually incentivized a run like behavior in money markets due to the optional imposition of liquidity gates and fees that was put in the 2016 round of Money Market Reform. The market was aware of those and to avoid them, there was actually more of an impetuous to be a first mover. So they're trying to eliminate that swing pricing is one method they've talked about. Other options put forth have been the potential for capital buffers or a minimum balance, a risk from money market funds specifically here though.

Dan Krieter:
I think any of these reform options are quite game changing because we know what the function of a money market fund is. It is supposed to be a very liquid place to place your investments. That can be liquidated very, very quickly. Any of the options we've discussed here, work against that. And so, I mean, I think we could be looking at potentially the end of domestic prime money market funds. And as we know them, I mean, this shift has already been in place in 2021 with some of the major prime funds voluntarily re-designating as government only funds the writing sort of been on the wall to the major prime funds and assets have dropped to pretty low levels compared to the historical experience. So we are moving that direction of the prime money fund complex in the US changing or disappearing is where we know it now.

Dan Krieter:
But it's also important to note here that this round of Money Market Reform will not likely just impact domestic prime money market funds. The Federal Reserve is working in conjunction with the FSB, an international standard setting body that will look to apply the same standards to offshore money market funds and even, and now transition the conversation a bit toward non bake, financial intermediaries. Ultra short bond funds and other "cash like vehicles" that invest in wholesale funding. And, and it's an important point because commercial papers outstanding while it's nothing like it was pre-financial crisis commercial paper outstanding now is close to the highest levels we've had since 2010. And so then if we do get these reforms, it seems like we're going to. What is the impact on the markets we cover from your point of view?

Dan Belton:
Well, there's a lot of them, but I think with respect to rates and spreads, they would likely lead to wider spreads, anything LIBOR like any measure of a unsecured term funding rate would necessarily move higher if there was more restrictions on prime money market funds. So for example, BSBY once LIBOR goes away, that would likely start to trade at wider spreads to other short term rates. Also, if we had a reduction in prime fund assets, corporations would be incentivized to find other ways of funding, most likely by funding further out the curve. So heavier issuance probably in corporate bond markets would be another result of this kind of reform.

Dan Krieter:
So it's just another step in the pattern we've seen since the financial crisis, this move away from wholesale funding. This would just be another, almost accelerant of that. Now it is worth noting the timeline on these things, because it's likely that the reform timeline will be quite long. I mean, that's how regulation works. And if we look at the 2016 experience with Money Market Reform, we didn't see prime fund assets come out until the months leading up to the actual deadline. So maybe you're wondering. Okay, why are you talking about this now? Even once they announced the reforms, it's going to be likely measured in years, not months before the actual deadline hit. And that's true, I'm not arguing with that, but I do think given the way things have been going thus far with prime funds here in the US already winding down, this is already a trend taking place when the reform measures are announced.

Dan Krieter:
I think we could see a quicker reaction this time than we did in 2016, both domestically and among some of the other financial market participants that will be hit by this regulation offshore [inaudible 00:15:33] money funds, ultra short bond funds, things of that nature. And then just quickly here, I don't want to spend too much time on it, but regulators are also taking a look at mutual funds as a whole, not just money market funds but also ETFs and fixed income mutual funds. They may well be subject to the same types of stability measures that are being talked about from money market funds.

Dan Krieter:
In fact, in a speech last March, Governor Brainard was talking about the topic of regulation, and she mentioned these other "non-bank financial intermediaries" as being a potential subject for regulation. So if you start to see capital buffers for mutual funds, things of that nature, that would, to me like be an impetuous toward wider spreads, if you're going to have a lower yielding part of the portfolio, that's now invested in some ultra safe component or, swing pricing or something like that that may ultimately affect your yield in a fixed income fund.

Dan Krieter:
It stands to reason that investors will demand more return from the bond portion of the portfolio, which is just, mechanically wider spreads the timing on the is all long term. We're not going to see a jump wider in credit spreads here likely, but rather regulation would be more of a weight on credit spreads in the medium and long term as these reform options play out. And we're just talking about it here today. So now why don't we move on to the second big piece of reform likely to come once Brainard or any other new vice chair [inaudible 00:16:52] the Fed, and that is an effort to increase the functioning of the Treasury market. This one maybe has a bit less impact on the spread markets that we cover, but I think there still is an impact. So Dan, why don't you walk us through that?

Dan Belton:
Yeah. So there's been a lot of discussion about the dysfunction in the Treasury market in March of 2020, mostly because of some of the similar dynamics that we've been talking specifically as investors demanded cash, they started to sell Treasuries and it really overwhelm some of the dealer capabilities to step in and intermediate. And there's been a lot of literature about this recently, specifically, there was a report from the inter-agency working group for Treasury market surveillance that consists of the Fed, Treasury, SEC and CFTC. So basically all the agencies that have a strong hand in regulation and in the Treasury market put together this piece and they recommended a handful of reform options to deal with this dysfunction, the Treasury market. So this report lays out three main components for regulation around the Treasury market. First there's the cash market for Treasuries. Then we have Repo and Treasury futures, and they laid out five different regulatory options that would enhance some of the market functioning in the Treasury market.

Dan Belton:
The couple that I think are most notable are first an expansion of central clearing. So they estimate that only 13% of cash Treasuries are centrally cleared on both ends of the trade. Whereas most futures are [inaudible 00:18:20] Repo markets, some are, some are not so expanding central clearing I think would be a pretty significant step in the direction of reducing counterparty risk, adding some transparency and alleviating some balance sheet costs via netting. Another one that they really harped on in this report was data availability in real time, both for the regulators in order for the Fed to have better insight into live data. And then just for the trading community in general.

Dan Krieter:
Yeah. Thanks Dan. So we're talking about more transparency for Treasury trading, more central clearing what's the bottom line on this stuff. That's going to increase the liquidity of Treasury. So we're making the most liquid asset class in the world, even more liquid. And I think that there are most likely limited repercussions for spreads here because Treasuries already enjoy a rather large liquidity advantage over other to types of investments in the fixed income space. But this will just go to further enhance that liquidity advantage, but maybe the reason why I wanted to talk about it so much here is because it dovetails nicely into the third major piece of reform, which is the SLR something that was talked about a lot at the beginning of this year and has not been talked about much recently. And the question was not [inaudible 00:19:29] get an SLR exemption. It's a fair question to be asked now that we've made it through all of 2021, QE is ending.

Dan Krieter:
Now the influx of reserves into the financial system should be slowing and ultimately stopping. Maybe we don't need an SLR now, but I would just say an SLR specifically in an ample reserve regime like we have right now. You could make the argument SLR is there to ensure a smooth functioning of the market. And we've seen the Fed deliver tools to ensure smooth functioning of the market even once the apparent period of their necessity has passed. Maybe the most recent example is the standing Repo facility that was announced in July of 2021 with RRP volumes near a trillion. Clearly there was no apparent need for a standing Repo facility when we have RRP volumes at a trillion, but we know that there was a time when the standing Repo facility would've served a major market need, not just in March of 2020, but also looking back to September of 2019.

Dan Krieter:
When we saw the SOFR spike a standing Repo facility from the Fed, would've made a lot of sense. They ultimately delivered it in and that's there now. And I think as somewhat logic applies to the SLR, we may not think we need one now, but I still think that regulators will go forward with one in case we do need one at some point. And so even though Brainard, who's not really bank friendly, may not love the SLR. I still think she will install it and that whether it's branded or anybody else, I think an SLR will come and talking about Treasury Market Liquidity is a good way to view the necessity. We already know, regulators want to increase liquidity in the Treasury markets, want to show up the capacity for the Treasury markets to stay strong, even during times of stress. One way to do that would be to give banks an exemption for Treasuries and SLR calculations. So they know they can add to their balance sheet and not worry about leverage. So if we know that's a goal for regulators, an SLR exemption makes sense.

Dan Belton:
Yeah, I completely agree. And everything we hear from the regulators does talk about how an SLR modification of some sort would really alleviate some of the balance sheet stresses that have prevented intermediation in the Treasury market recently. And I agree with your other point that it's going to be much more politically viable to install an SLR modification now than it was in the first quarter this year, when it was in the front page of popular press and people were talking about it, and there were politicians going on about how this was a form of bailing out banks. It was very politically unpopular. And I think that's why the Fed at that time chose to punt on the SLR extension. But now that it's not as widely discussed, think it could be fairly easy to slide it in there, fairly undetected.

Dan Krieter:
And if we do get an SLR exemption, what's your view on impact?

Dan Belton:
An SLR exemption would lead to wider swap spreads. We would have just an increased bid for Treasuries, particularly from banks that would no longer have Treasuries count in the denominator of their supplementary leverage ratio. We estimated back in March that that was going to allow holdings to increase by something in the realm of 200 billion in Treasuries. So for very high quality spreads and swap spreads, I think you'd have, this [inaudible 00:22:32] of Treasuries lead to moderately wider spreads. It's going to be less of an impact further out the credit spectrum.

Dan Krieter:
Yeah. But it'd be both credit and swap spreads. And I think as we sort of wrap up the conversation on regulation here, that's sort of the primary takeaway is that this move towards increased regulation is likely to put upward pressure on both swap and credit spreads in 2022 and beyond. It's not going to be anything significant, it's not going to be anything super rapid, but it would just be a sort of upward influence over the course of the year. And one of those things that feeds our expectation of just a wider trading plateau on 2022, that these all time tight spread levels are going to have a hard time being justified, given regulation. And the other headwinds we talked about at the top of the show. Now, then before we sign off here, I think we should at least spend a quick moment to discuss the market's likely reaction to what would be a surprise announcement of Brainard as the chair. How do you think spread markets react if we got Brainard?

Dan Belton:
Well, I think broadly you saw the market reaction on Tuesday of this week where bond yields rallied and equities sold off as the perception of Brainard odds started to increase. So I think the perception of Brainard is that she's going to be much more dovish than an already pretty dovish chair than Powell. So that would probably be I think maybe neutral for credit spreads, at least in the near term. It's hard to say with much certainty how that's going to play out over a longer period of time, but I would say probably skews, dovish, for sure.

Dan Krieter:
Yeah. My knee jerk would be that you'd see a little bit of an initial risk on impulse coming from markets on the announcement of a Brainard. Equities, I think do well. Spreads might rally a little bit. It wouldn't do anything to change my longer term view. These drivers are still in place, so it would just be for me, a potentially even stronger opportunity to take profits or reset into higher credit quality, lower beta asset classes until we get the widening event that we're looking for.

Dan Belton:
Anything else, Dan.

Dan Krieter:
That'll do it. Everybody enjoy your sort of four day weekend coming up here and we'll see you back here next week.

Dan Belton:
Thanks for listening to Macro Horizons. Please visit us at bmocm.com/macrohorizons. As we aspire to keep our strategy efforts as interactive as possible. We'd love to hear what you thought of today's episode. Please email us at daniel.belton, B-E-L-T-O-N @bmo.com. You can listen to this show and subscribe on apple podcasts [inaudible 00:25:00] your favorite podcast provider. This show is supported by our team here at BMO, including a FICC macro strategy group in BMO's marketing team. This show has been edited and produced by Puddle Creative.

Speaker 2:
This podcast has been prepared with the assistance of employees of Bank of Montreal, BMO Nesbitt Burn incorporated and BMO Capital Markets corporation. Together BMO who are involved in fixed income and foreign exchange sales and marketing efforts. Accordingly, it should be considered to be a product of the fixed income and foreign exchange businesses generally, and not a research report that reflects the views of disinterested research analysts. Not withstanding the foregoing this podcast should not be construed as an offer or the solicitation of an offer to sell or to buy or subscribe for any particular product or services, including without limitation, any commodities, securities, or other financial instruments. We are not soliciting any specific action based on this podcast. It is for the general information of our clients. It does not constitute a recommendation or a suggestion that any investment or strategy referenced here in may be suitable for you.

Speaker 2:
It does not take into account the particular investment objectives, financial conditions, or needs of individual clients. Nothing in this podcast constitutes investment, legal accounting, or tax advice or representation that any investment or strategy is suitable or appropriate to your unique circumstances, or otherwise constitutes an opinion or a recommendation to you. BMO is not providing advice regarding the value or advisability of trading in commodity interests, including futures, contracts, and commodity options or any other activity, which would cause BMO or any of its affiliates to be considered a commodity trading advisor under the US Commodity Exchange Act. BMO is not undertaking to act as a swab advisor to you, or in your best interest in you to the extent applicable. We'll rely solely on advice from your qualified independent representative in making hedging or trading decisions. This podcast does not be relied upon in substitution for the exercise of independent judgment.

Speaker 2:
You should conduct your own independent analysis of the matters referred to here in together with your qualified independent representative, if applicable. BMO assumes no responsibility for verification of the information in this podcast, no representation or warranty is made as to the accuracy or completeness of such information. And BMO accepts no liability whatsoever for any loss arising from any use of or reliance on this podcast. BMO assumes no obligation to correct or update this podcast. This podcast does not contain all information that may be required to evaluate any transaction or matter, and information may be available to BMO and, or its affiliates that is not reflected here in Bema. When it's affiliates may have positions long or short and affect transactions or make markets in securities mentioned here in or provide advice or loans to or participate in the underwriting or restructuring of the obligations of issuers and companies mentioned here in. Moreover, BMO's trading desks may have acted on the basis of the information in this podcast. For further information, please go to bmocm.com/macrohorizons/legal.

Dan Krieter, CFA Director, Fixed Income Strategy
Dan Belton Vice President, Fixed Income Strategy, PHD

You might also be interested in