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We start strong with a conversation for Global Wall Street out on LinkedIn. Wayy of Blackrock is a massive value add she publishes at a regular rate with wonderful informative charts. Whaley, let's dive right into that. And you have something that pushes against all of the zeitgeist. You say there is no rising tide lifting all boats. That's sacrilege.
Discuss well, if we think about the peeriod after global finance crisis, with the injection of Emmas pool of liquidity, companies that didn't have good fundamentals were rallying alongside companies with very good fundamentals. And this is what I meant by rising tight lifting all boats. But we're now in an environment of greater dispersion. We're in an environment of secular transformations like AI that is likely going to imply winners take hold. So this is an environment where being
active and selective pays off more. And this is not a hypothesis. Our study actually shows that in a period coming out of the pandemic, actually the additional alpha generated by good active managers is greater compared to the peerage when rising tight was lifting all boats.
Adam Parker a week ago in Barons I Thank You Parnassis Funds had a paragraph on the value of gross margin analysis. Jacob sanashin yesterday at Barons recapitulates that with a lot of Adam Parker research and the income statement, those successful companies that are rising, what does their gross margin or other margins down the income statement look like.
Honestly, it's incredible that margins in the US have held up so while they are testing a recent year high, and it's notably higher than the equivalent in Europe in Japan, for example, So there really are something exceptional about US companies. But again to the point of greater dispersion and differentiation, one would note, digging under the hoods that actually a lot of the margin staying elevated and pushing higher has been driven by names Magnificent seven that are growing their
revenues without actually hiring a lot more people. On the other hand, you have companies smaller PABs. For example, they are more vulnerable to rates settling at a higher level compared to before. They are more vulnerable to having to refinance their dad they don't have immense amount of cash sitting on their balance you. So again, this paints the picture of being active and selected.
Well, I must confess I am a huge fan of yours on social media. I need to know where you bought that slice of pizza the other day. But you had a post yesterday pointing out equity manager Alpha and how it's improving. I'd love for you to expand on that. I'd love for you to talk about active risk taking and how active risk takers are outperforming in the current environment.
Well, so that's really important. Then, this is why we think that this is really the golden age for being active right now. This is an environment of dispersion. You look at company is large cap versus small cap, tech versus consumers. Their margins, their earnest momentum very very different. I only talked about them on the level of sectors. Dispersion is even greater with in sectors along on the
level of single names as well. So our study shows that for good managers they're being paid more for taking active risk and for median managers if they keep static macro factor exposure. It would have been okay in an environment where rising tight was lifting all boat coming out of global financial crisis. But now if they have static exposure to macro factors that are becoming less friendly, that
actually becomes more punitive in this environment. So one can no longer get away with sitting on kind of macro factors and let them drift. We've got to be a lot more dynamic and active in our management style.
Where you alluded to the data center build out, right, I mean the world of private markets in funding infrastructure and the AI build out and all that good stuff. And I just you know, I'm looking at some of the you know, high frequency cappecks indicators here in twenty twenty five, and it looks like things are pouncing back. It's unlike what I would have thought with all the uncertainty regarding tariffs in trade. You wouldn't think that corporates
that the c suitely spending money in this way. What are your thoughts? What are you guys seeing over black Rock?
The tariffs uncertainty is a timed uncertainty things are happening very very quickly, but I think the expectation is that we're going to see Lending Spot in the coming weeks, months, and quarters. Whereas the AI competition is a multi decade competition that goes beyond the cyclic code, apps and flows, and I think companies are viewing that as existential competition.
You either spend and stay on the table or you could be at did the competition right, which is why we see Kapecks coming and continuing to be very strong, which is why we also think that there's a lot more to go in.
The AI across the nation.
Wayey with Black record, as we continue with Wayley here with Green and the screen ever so slight the vics nicely under seventeen sixteen point sixty three. Damien said he wouldn't show up unless I quoted yen one forty eight fifty one. Yeah, and really a surprise can get out to a weaker one fifty. We welcome all of you on Serious XM Channel one twenty one in Washington, Boston, in New York in a special good Morning out on YouTube. It's our new distribution, humbled by the success of the
YouTube product, including Tracy Alloway and Joe Wisenthal there as well. Wait, if we define exuberance is something to do with Alan Greenspan or something to do with Robert Schuller at Yale, how does Wayley measure the exuberance the equity market this summer of twenty twenty five.
I think by historical standards, if you compare to average multiples right now, multiples look stretched. But I think that is a big kind of statement to compare to historical averages because we're not in an environment where things are expected to revert back to historical mean. We're in an environment of transformations, right, So what is the benchmark? What
is the fair value? I think all of them needs to be scrutinized a lot more in this environment, I would observe whilst versus historical long term You know, you look at Sharpe for example, they look stretched. You look at Magnificent seven, they're forward. Ky's actually right now in the middle that they are thirty times a pe right now, in the middle of the range since the launch of CHGBT, Right, So, so I think really scrutinizing the level against which we
make our comparative statement is the key. I would also say, right now, you know, like we are, we're risk on despite multiples looking a little stretched because technical and positioning is not as stretched as compared to the beginning of
the year. This has not been a much participated, heavily participated rally, especially by institutional investors from what we're hearing, and alongside the fact that fundamentals are holding up, alongside the fact that you know, we're talking about lots of headlines on tariffs flying around, but considerations for US that sustainability should take out some of the extreme left tails. So this is why we're risk on despite val Well, wait, I.
Mean, look at US equity earning season, right despite all this ongoing trade uncertainty, they were surprisingly good in the first quarter. They're looking rather rosi here in the beginning of two Q and sorry to borrow baseball now during All Star break, But you know, what inning are we in exactly? I mean, most argue that we're late in the business cycle, but many still feel that, you know, the US exceptionalism narrative is merely taking a modest breather. What are your thoughts there?
How many innings are there in the analogy all the time.
This is the first guest, we've ever had great point, great question this afternoon. I mean Carpedo and you know, Rick Reader, when they want to hear from you on the equity markets at two pm, you just say, I'm sorry, Rick, I've got to watch Red Sox Cubs for nine innings. Damian continue here.
I mean just in terms of the business cycle, and again it goes back to your point on CAPEX, which is so important. I mean, like put you rightly point out. I think the tech sector the mag seven we're responsible for eighty percent, upwards of eighty percent of all CAPECS spending twenty twenty four. Somebody told me that I don't know, but you know, cap X is what we should be focusing on here, and it seems like in the US at least it's okay. I mean, you seeing the same thing.
I agree with you hundred percent. Corpex is what we should be focusing on, and also companies tech budget upgrades. You know, these are the things that we pay attention to understand how much more there is to go in the AI build out phase. But specifically back to earnings, like you said, Q one was very good. Q two expectation was for SMP to row about five percent six percent on a year on year basis. That's not hard to beat. I am pretty confident that we will beat that.
You know, like it's mostly driven by tech, of course, but we're in the early innings of the tech AI supersycho, so we definitely think that there is there is more to go. Yeah, so we continue to be overweight driven by our conviction in tech.
Well, well, how do you rationalize okay ai tech I get it even three m now with a nice recovery after a decade of mediocrity. How do you rationalize a thirty time times plus multiple for a large grocery store, big box store. That man has a grocery bolt and called Walmart. How do you it's grown single digit it makes nice even How does that thing get priced out it over thirty times earnings?
I can comment on single names, as you know, Tom, but I would say that this is why we need to be selected right. There are companies that we legitimately can see a case for AI boosting productivity profits, and there are companies where such estimate is a bit stretched and hard to justify, which is why, even though we have the broader overweight within that we focus on companies that are likely going to benefit from a greater AI adoption,
boosting productivity, including healthcare, including financials. But of course tag consumer discussionary and so and so.
How does Wley with Chris Waller coming up at forty minutes, how does Wayley translate this FED debate with the President?
Yeah, I think the bigger micro picture is that we're in an environment of high for longer because of inflationary pressure, in part thinking about kind of the tariffs new regime, but in part because of the environment shaped by supply, including labor supply shortages, right, so thinking about aging population and persistent wage So that being the case, persistent inflationary pressure should mean rates would settle at a higher level
compare to before. But it means that income is back, you know, for the first time in a long time. Eighty percent of global fixed income is yielding four percent and higher. It will be very different two before. This is an environment for income.
Beautifully described the ambiguity here of a sustained higher rate. Most people go OMG, the gloom of it all, and others that think of John Riding formerly at bear Stearns now Bring and Wayley at Blackrock saying there's an opportunity there for the coupon and the paths forward. Wayley is with Blackrock.
You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern. Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube.
There are people that talk and there are people that do. And out in Chicago, Ta Konig is one of the people at Monroe Capitol does these huge commitment to Northwestern Medical, of Northwestern University and all of that, and of course his work is academics, i should say, in Indiana University, a bit ago and Damian. Why don't you bring in Ted because this is sort of in the wheelhouse of this expansion of alternative investments.
Yeah, Tad, will you and the team at Mono Capitol focus on middle market middle market credit, really private credit to be serious? But here, you know, we know the private credit markets are consolidating, and we were just talking about the private equity space. My goodness, fundraising is plunged. And so my question for you is what are your thoughts on the emergence of all these continuation vehicles? Colo demand this week MNA activity. I mean, is the market healthy.
Yeah, the market's healthy, Damien. But we're seeing today it's a unique phenomenon. We came off of two or three really solid years of M and A and private equity. Dry powder today sits in about a one point seven trillion dollars. It's the highest it's ever been. This is money on the sidelines.
We find all work and.
Because of the challenges let's say in the last year or so with prognosticating tariffs and regulation, inflation, interest rates, there's a lot of PE firms that are sitting on companies and not able to sell because the market's not clear. And when that happens, the system gets backed up, and
what we see is a proliferation of continuation vehicles. We see second can down the roads and you know the challenges you're seeing kind of the results of that right now when you see these endowments selling private equity portfolios. We've never seen a year where there's been more private equity sales of portfolios into the marketplace. Secondaries.
Yeah, well, I mean we had way lea of Blackrock on earlier, and we had this wonderful discussion about CAPEX here in the US, and we know that it's the big tech, the mag seven that's driving a lot of the data center build out. But what's going on in the middle markets in middle market America and your wheelhouse? You know, what are the proceeds being used for? Is it for you know, recaps in restructuring or is it being put to use?
Yeah, so it's interesting. We've got about five hundred and twenty companies in our portfolio. We're the largest middle market finance company in the country.
So you like the new Chemical Bank, that's really what we're talking about.
Yeah, you know, the key is is that all the financing has come out of the regulated banking system for buyouts and it's going into the alternative assets system. And we've been the beneficiary of that because that's been our focus. Most of our competitors have kind of morphed up market and done larger deals. We've kind of stayed in our wheelhouse.
Do you compete with Jamie Diamond?
No, Jamie's a good guy. He's never going to be in our business and we're never going to be in his business.
He's trying to be in your business. I mean, let me ask you this though, I mean, there has been a lot of talk about how you know, private credit really is, you know, eating Wall Street's cooking here. I mean, is there any truth to that? I mean, is there any way that the big banks can crack that nut?
You know? It's interesting. There's two ways banks work. One is there either in a distribution business or they're in a storage business. They make a hell of a lot more money in the distribution business than they do in the storage business. So what they want to do is take the deals, pack the deals, distribute the deals, and make fees. It doesn't require regulatory capital, it doesn't require risk capital, and it generates significant earnings.
Surveillance Audibo Damien sas a fight up about alternative investment Monroe CAPITALO, I don't care. I have the golf stream after the show and I'm going out through a hair and for the first time in ninety years, the Boston Red Sox play at Ridley Field. And what I want to know, Ted, is do I I'm looking at stub ub right now. You gotta help me. Do I go with section eighteen just to the left for twelve hundred bucks,
two seats. Missus Keane says she's got to go or do I pump it up for twenty six hundred dollars. Excuse me to check that twenty eight hundred dollars for where you sit Section AA nineteen. Which is it? I tell you what you do?
You call me and I'll call my pale Tom Ricketts, and I'll put you next to the double game.
Say good morning to mister Ricketts. I have goosebumps. I'm going home, folks. I have a younger children birthday party. I'm told I have grandchildren haircuts, and I said it may be divorced. But Red Sox cubs at ridley Field, I have at least I got ducky bumps. Right now, Bill Murray, I'm sure will be there. This is like a huge deal. Would you like to ask a question?
Look at your eye back on the ball here. I mean what I need to know here is will the one big beautiful bill be good for middle market America and for your space?
You know it's there's two ways to look at it. I think anything that provides certainty is good, and we finally have some certainty on tax policy. The challenge that Tom was referring to is middle market companies based decisions on capex and growth and those are five ten year decisions. If you're a manager, private equity firm, an owner, a family business, second third, fourth generation business, significant business, you have to make decisions based on projected cash flows and
payback periods. If you don't have certainty on what that's going to look like, it's very hard to make those decisions. That's why over the last six months nine months, we haven't seen a lot of big capex. We'd put about ten billion dollars a year into the ground in middle market companies. This year we did about four and a half billion in the first six months of the year,
which we're on target. But what's interesting that this year eighty percent of our deals came out of our portfolio add ons, tuck ins, and dividend recaps, dividend transactions, not new platform buys, not new M and A, but dividends to sponsors that wanted to take money out of companies to create value to their LPs because their alps are clamoring for return of capital.
Yeah, so, I mean, let me ask you this, I mean, what typpy yields. I mean, I know it's very different. I don't want to get into the weeds here, but I'm thinking mid to high double digit yields in your space? I mean, is that is that something that you see often?
No, I mean we're We've done double digit yields to our LP investors for twenty six years now, so think ten to twelve percent. That's what our LPs want. And if you're a pension fund or you're an insurance company, that's as good as you can get.
Should Lisa have private credit in her IRA?
Great question, Great question. Lisa should have private credit in her portfolio. The question is whether it's in her IRA or not. Lisa can do it because she's more sophisticated than ninety nine percent of the population, but the rest of the population doesn't necessarily understand this.
Are they going to get a second rate piece from the private credit vendor because fancy guys like you?
Great question, Great question. I'm concerned that the acid aggregators will start creating detailed products only, and that's a challenge and something back on the stuff.
In there, come back. I'll see in Chicago and your Red Sox cubs here really history being made right now, Tech County. Thank you so much for running your capital.
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We get lucky. That's all there is at Chewett Brandon o' lindsey, and you're on the airlines are a huge out of Georgia tech. I'm incredible vista on transportation in America. I got to start with two things. Let me start with the railroads. I got a two hundred billion dollar railroad. They're only doing this because Trump's president, right.
I mean I think so, because I've been doing this for twenty years, and for twenty years I've heard a transcontinental merger is just a no go because we tried this one.
If they tried it, well, that's right, we tried.
Canadian National was the last one to try to buy Burlington back in the year two thousand and It's spurred enhanced M and A regulations now. But I think the CEOs look at this and say, look, industrial productions has been flat for three years. We've kind of gotten all the costs out with precision scheduled railroad. And what's next, Well, it's merger.
Do you think this will go through? Brian Olenski, what do you think?
I think the odds are possible here. Look the way we do things today with these regional networks is Union Pacific. We'll have traffic going from La maybe to Atlanta. Yeah, they'll push it to Cho to connect it to Norfolk Southern that will then take it down to Atlanta. And that's in both carriers' interests because they're maximizing revenue and profitability. If now you own an East West rail line, you'd say, I'll just flow that right through Saint Louis or Memphis.
So I think there's a lot of potential efficiency here and actually economic benefit for the country.
Hey, fabulous, love it. Thank you so much for that. I have a personal question. We rarely do we have someone come in that actually flies an airplane. For all of our listeners and viewers with this horrific twenty twenty five, they feel safe in the American airspace now, the commercial American airspace.
Oh fully. And I am a commercial pilot and I understand the airspace system quite well. There's so much redundancy. I mean, I know, the media attention on Newark was really bad, but the reality was there's dual runways there. They had to close a runway for repairs and it caused a backup.
Can you get me a seat at the United Club at Newark because every time I go, it's Pas working there. Brandon Olinski with us, with Barclays, Damien jump in here with airlines questions.
So yes, but Brandon, you know, it just so happened. Last week I got to fly down to Dallas Fort Worth, you know, for a family event. It was unfortunately passing family, but nevertheless I sat on the tarmac for three hours. Three hours at Dallas Fort Worth. This is the hub for American Airlines right because there was a lightning storm that hung over the air Have you ever heard of such a thing like that? The entire airport closes down, They leave you on the tarmac for three hours, completely
blew up by evening plans, everything about it. I mean, how does an airport manage itself like that?
Well, the major hub we are talking about American and their operational performance does lag well? No, I like Robert Iman team down there in Dallas, and for sure they're trying hard and Roberts brought a lot of operational focus this company. But even for Delta United, this happens when a thunderstorm shots started the field.
You can't get your ground American airline issue. It's the airport, right because there's.
Only so many gates and there's incoming flights, so you can get stuck.
But Dallas love Field, Now I'm aplying into love Field.
You most hate going to social events where people just corner you and you know, give you all the complaints, like young Sassaur here, what's your single best buy? If you're hearing Scott Kirby this week, United, is your single best buy in Latin America? Is it Air of France? Is it something in the US?
Brandon?
Where is it? Now?
I'm a buyer, mister Kirby. I mean, he's got quite a culture going in Chicago.
He's a pilot. You're biased because he's a pilot.
Uh, He's he's got his point of view for sure, and we don't always see. I had a lot of things, but I really like the environment that he's created at that company, and everyone's rowing in the same direction, and you just see you rarely see these cultures that really mesh every company in CEO says they have a culture, but I think Scott's really got a lot of good things going on.
If you're all day on this, I got to shift. I can't say enough, folks. This is out of Georgia tech academics.
State.
Excuse me, Georgia state, excuse me. This is I might stand corrected. This is incredibly important. It's not just about a flight out of DFW ORWR, FedEx, Amazon and moving boxes around in America. Where are we in three or five years.
Oh, this is a great question. We need to bring UPS into that equation too. And I don't want to be negative on UPS, but there's just immovable economic forces at work here. What's happened in the last twenty years is we've seen FedEx Ground developed this independent contractor network across the country and it's grown significantly, and Amazon effectively
replicated that five or six years ago. So you have these two very large, low cost, high service networks, and effectively, here's UPS that's fully unionized, fully team start contracted, and they're really struggling because they're the high cost provider with
incrementally more challenging service. So the way we see this and we saw this play out in the less than truckload sector because there was a big competitor there, Yellow Roadway, which was unionized, and Old Dominion, which is one of the highest valued thoughts in my sectors, really took a lot of share and ultimately Yellow went out of business. So I'm really worried that this uncompetitive dynamic where UPS
has a contract that the others don't. We see parcel shift going towards Amazon and FedEx long term.
So what's the plan on UPS. It's a dividend play, right, I mean, what all is there.
I think they're yielding six or six and a half percent right now, and I don't think they're going to cut the dividend anytime soon. But if you listen to UPS, Amazon is a twenty percent customer in their domestic US network, and Amazon's shrinking that by half in the next two years. It's going to really hit in the back half of this year, and UPS has come out and said, look, we need to shrink our domestic network by ten percent. That's going to be really challenging in these very time
definite pickup and delivery networks. So we're of the view and we tell investors all the time the dividend looks juicy, but ultimately, if you're shrinking your network, you gotta think.
A level four.
You know, I'd love to stick with this talk on logistics in the US here, but I gotta go back to airlineses time. I mean, what you saw on the United Jet Blue partnership, this Blue Sky partnership, how's that going to impact things? And more importantly, what are your thoughts on the Delta one club. I love it there, It's so awesome.
Oh well, Delta one is nice if you haven't tried it, especially at JA.
Recommend Is it working? Is it feeding the bottom line there?
I mean you can find a seat there by the way, for sure. I think it's more encompassing. I mean, United is pursuing the same strategy. They have their ployers or lounges as well. But it's clear, you know, Delta has been on this journey effectively since they as exited bankruptcy in two thousand and seven merge with Northwest. They said, we are not going to be just a commodity anymore. We're going to be differentiated and we're going to offer you things. Do you want to pay less? Do you
want to pay more? And we'll give you a differentiated experience. And now at the very high end they're really trying to it.
You're the high end, Damian A minute, I got one minute left. Is there a partition, as Kirby outlined, between international travel, Transatlantic and the Pacific the romance of international and a dog eat dog domestic travel for twenty twenty.
Six, I think International is going to continue to pay dividends for Delta United to some extent American as well, just because we shrunk the wide body fleet. These are the dual ale aircraft. To confly, Yeah, we got rid of them during the pandemic. It's a five percent smaller fleet today and everyone's going to grease France Spain in the summertime. So this is going to keep paying dividends for them for sure.
And are you seeing visitor numbers, tourists arrivals, all of that is going up from the US.
Brought well, remember that the dollar was strong, so when we're like European visitors are down, it was just a function of FX. I know everyone want to say they hate Trump whatever, but the reality was it's a simple FX equation when when the dollar is weak and then all of a sudden Europe.
Yeah, exactly, Tom. You love when Europeans come to New York City, don't you? Especially real.
Yeah, it's like a huge, huge deal, and it's like, off the top of my head, folks, it's tourism. You're seventeen percent of the to me. Can you Are you based in New York? Are you based like in Dallas or Georgia?
No, I'm based right here.
Thank you so much. Brandonaglensky with Berkley's there.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple, Corplay and Android Auto with the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal.
Roy Chaupers Live this Anna Harvard and Wharton. Yes, the former director of the Consumer Financial Protection Bureau. He was appointed actually by mister Trump to the Democrat seat slot ages ago, and then it's more associated with Democrat party politics. Roy, thank you so much for joining Bloomberg this morning. Is it the wild West out there in regulation with a Trump administration?
Well, it's interesting, it's not so much the wild West. It's mostly a set of giveaways to very politically connected firms. You know, we have seen big giveaways to Wells Fargo by the Federal Reserve. We have seen giveaways from the CFPB essentially pardoning and pulling out of court allegations of
pretty serious crime. So I think you're starting to see parts of the business community getting a little nervous about this because if the rules are applying to some of them but not to others, that's a recipe for a playing field that's just not lovely.
I don't want you to pick on one thing. I'm going to do it for you. But I guess my concern is if there's big things that gets through, like the railroad merger of two hundred billion discussed today in Norfolk, Southern and Union Pacific. The fact is you're the guy that went after Corinthian College. I mean there's some real garbage out there. Is that stuff going to slip through the cracks because of a more entrepreneurial regulation.
Well, let's talk about that.
So Corinthian colleges not only engaged in some serious misconduct against students and loading them up with debt for worthless degrees, they also were defrauding functionally the federal government out of public funds.
So I do think.
That in my experience has been that sometimes when there is a push for letting animal spirits run wild, a cost of that is more funds, public funds being siphoned away to bad actors, but also individuals engaged in serious, serious destruction of their own financial life, and really no one is there to fix it. And I don't know if the market system in the US thrived from just
no rules. In fact, many people would argue our securities laws, our patent laws, so much of that was critical for really driving a lot of innovation and our government investments which helped incubate you know, SIRI, GPS, so many transformative technologies from NASA and DoD. If that is all gutted too, that means our private sector won't be able to run with it. So I'm really not sure that this is good for long term growth. To have a sort of no regulation, no law enforcement type approach ro we.
Have to go there. The Consumer Financial Protection Bureau basically just had proposed to you know, keep medical debt off their credit reports, but that ruling was just overturned by the White House by Trump. More than fifteen million people have more nearly fifty billion of medical debt on their credit reports. Talk to us about the impact of that. Is that good for the American household?
Well, so here's the deal. Lenders really want to know what people have borrowed. I think the difference with medical debt, and there's been a series of studies that we conducted on this, those medical bills are not really predictive of whether or not someone will repay an auto loan or a mortgage. The circumstances are totally different. And we also find that many of the medical bills that are parked on credit reports, we're either already paid or we're never
owed in the first place. I think we've all experienced this, that loop between the insurance company and the medical provider. So I think this is going to have a negative consequence. It's going to lower credit scores for many people. It's going to make it tougher for people to really take those risks when it comes to borrowing for their first home or advancing in their financial life. So again, I just think this is a total stop to the medical debt collectors, debt buyers, and credit reports.
Well, just to clear the parodience, I mean, these credit reports are the same things that households need to get a mortgage, right, to get an auto loan, a small business loan. So I've got to believe that if this stuff is included on their credit reports, You're absolutely right, it's going to make it a little bit more difficult one we'd think to take out a loan, right.
Yeah, And I just think we want the information on credit reports to truly be accurate, and we wanted to reflect loans that people have. I really worry that, for example, all of these buy now, pay later loans they're not necessarily I had auto lenders complain to me how am I supposed to know what people owe on buy now pay later? And again we see this new CFPB just completely pardoning and letting these buy now, pay later companies do whatever the hell they want.
Right, you had an extinguished career at Wharton and then before that at Harvard, I mean Bloomberg surveillance. We want to know when you were at Adam's house in Cambridge at Harvard, did you swim nude in the pool?
I think they actually covered up the pool well before I got there. But you know what, I do think that the things that you end up learning in these institutions, you learn textbook stuff. What we used when we were regulating was actual, real world business experience. And I feel that when you have regulators that are now just blindfolding themselves to what is happening in the markets and what is happening with people's lives, that is a recipe.
He just completely. That was extra points. I didn't want.
I didn't I didn't want to make anyone seem too dated by it.
Thank you so much. Don't be a stranger. We'd love to see at our headquarters here in New York. Is again, mister Choper is public service, uh in the CPP.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Applecarplay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon alone from our flagship New York station. Just say Alexa, play Bloomberg eleven thirty.
The newspapers.
Okay, birthdays, right, it's a time to celebrate.
It's your breath one today. I'll love today this morning. Oh okay, baby immediately really seven years old?
Okay, no, it's nice.
Somewhat disciplined, somewhat happy, birthday. But it's also time where you can cash in on some freebies. Okay, So I always try to get my free Starbucks on my birthday. That's the one thing I go for. But some people make an event out of it, right, So you have these competitive birthday freeloaders. So the Wall Street Journal they spoke with one guy. He makes an event out of it. Okay,
he has a spreadsheet of all his stops for the day. Okay, he starts working on it monthly in Evans, he spends like fifteen hours He's sifting through emails and loyalty apps, terms and conditions. He starts today like six am. He logs like ten thousand steps that day. Okay, he has drives thirty to fifty files in his car. Businesses are saying, you know what, more people are doing this, they're cashing in. Did you know that you can go to Denny's and get a free grand Slam of breakfast?
Leonia, New Jersey. I just want to know what your go to Starbucks drink is?
Black coffee, so boring, brown sugar.
N The only time I've been to a Denny's is between twelve forty four.
That's time.
That's the truth.
Next.
Okay, so banks, right, they've had an issue with private equity taking over their junior talent. This has been the news a lot. Goldman SAX thinks they have an answer to that. So what they're doing, they're offering them buy side jobs within the bank. So apparently yesterday Goldman sent out a letter to its summer interns. This from Business Insider,
they announce this new program. It's going to offer a select group of those junior bankers the chance to work for Goldman's asset management business after their two year investment. Banking analyst pro truly read between the line statement yes, yeah, yeah, No.
I mean for me, it's all about, you know, trying to keep the town from walking out the door. But I mean what's amazing is you have some real like kind of conflicts of interest. Right If you have a banker that's working for Goldman SAX, but then he's already kind of committed to working for I don't know, Apollo or some other private equity shop two years down the road. Yeah, that's kind of a big complet of interest from a client perspective.
Right, You're not as good looking as Shnalie Basset, but I'm going to the nale question. The bottom line here is investment banking hasn't come back. No, it's not booming.
No, no asset management. I mean those asset management positions, that's what you're really after. At least that's what I'd be after if I were.
Graduation slots aren't there and investment banking anymore.
And they're not really there, and as management, it depends. I mean, look, if you're private credit, yeah, but how Look, I just questioned the durability of that market, thank you very much. But I mean other areas like commercial real estate. I mean again, you know, the hiring is kind of not what I mean. And I'm kind of close to this because I have a son who's twenty years old and going into his junior year of college. Yeah, it's tough. It's competitive out there, for sure.
It's really something that's really tough.
Yesterday, Okay, have you are you a fan of the apparel? Sprint has been.
Selected members of the household?
Okay, okay, selective members. You know, White Lotus like made it big because the second season filled in sicily. Some people like it's like a bittersweet flavor.
Right.
I'm not a big fan of it. Others say it tastes like medicine. That's what I kind of think. But there is a new summer cocktail. It is the Hugo Sprits. Okay, you have to try this one. It is prosecco, Club soda and Elderflower.
Older Flower. I am a big fan.
Of the elder flower. The Saint Germaine is like, great, I love it. So Saint Germaine actually said they're they're growing. They were bought by Bacardi back in twenty thirteen, but they're really growing. They have the hand pick flowers that grow in the French Alps, you know. So people really love it. It's on the TikTok and Instagram feeds. People are really enjoying.
It's a glue free Does.
A president want real cane sugar?
That's a good question.
And my go to is always a spicy margarita. But you know, if you're going to make a spicy bug rada the right way, you need that Tahiti around the rim. I don't think any of that salt that's the good stuff.
This is way too much infermanship.
Thank you so much.
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