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Idea, and this is what surveillance is about. When we started doing this a zillion years ago, it was about the intellectual abilities of these guests and touching upon the secret sauce, the pixie dust of why they were at a given bank, a given university, a given investment shop around the world. And this is part of doing economics, finance, investment, and indeed international relations. Major shout out today to Henrietta Trees on Short Time Veda Partners on all the news
out of Washington. I thought, just a great job by the Bloomberg team working literally overnight, Stephen Dennis leading our coverage on Capitol Hill, with Zach Cohen and Josh Wing Grove out at the White House as well many others. It's just a huge team response. But we started with bonds and equity and what you're going to hear here our windows into the way these people really talk when
they don't dumb it down. For Tom Keene, here's a mandolin on Blackrock with the linkage here of accounting, an incentive and debt new issuance.
There are two things to consider. One is a lot of these companies are still in a net cash position, which is important. So they're adding debt to their capital structure, but their leverage is still incredibly low because they have all of this cash on their balandcyet. The question is why that's left over from the pre twenty seventeen era when cash was generated overseas and then it needed to be taxed to be repatriated back to the US. So
there's still some cash over there is the point. The second point is that there's a bit of an upper bound to how big these capital structures can get. So in our note, which you know we outline, we estimate that if you look at just like the mag seven X Tesla, so removing autos, there's probably an incremental four hundred billion plus of incremental debt capacity if you just increase the gross leverage by half a turn, really modest,
that's a really large number. But we don't expect that to be utilized because these capital structures, we think cannot get that large, and also that deck capacity will just be used gradually over time for strategic opportunity.
Absolutely brilliant, Just to put one idea in here, it's like foreign exchange every day, even as smart as you are, you have to go. Okay, it's euros as compared to dollars, but it's dollars as compared again basic stuff and the amandelidum world. What is so interesting is traditional finance, but using it applied across these technology juggernauts. It's not the same math, it's not the same microeconomics, it's not the same Fabosi or is v body up Austin University. It's
something original going on right now. As we see with these billion dollar transactions of thirty year paper that seemed to be sold on five phone calls. One of those phone calls may go to B and P. Perry by other French giant. Greg Boudel has been just wonderful in equities, in the derivative dynamics of the equity market. Here Greg Boudel with enthusiasm.
Well, essentially, what we've seen is this kind of pocket of turbulence. The last couple of weeks government shutdown has been a part of it. We think is kind of positioning led that the market got a bit of ahead of itself in September with this kind of real reach
for upside, this exuberant rally. But what we've seen out of the last say three or four weeks, is a pullback inequities, pick up in volatility at a time when the newsflow that we have had, the bottom up newsflow has actually been very strong.
Earnings.
We've just been through kind of the vast majority of earnings.
Were they good enough for this market? Were they good enough for you and your call on this market?
Yeah?
I think they were a really good earning season. I mean, you can start with the large cap tech and I think one of the best ways to look at the lens of earnings and distill the information is what did all the analysts do that cover the stocks with next year's numbers? And they took all of those numbers higher. So they digested that news, from the calls, from the releases, and they increased their forecast.
Good Bottle b MP pery by with a really terse optimistic note. On podcasts, We're on an Apple on Spotify, on YouTube podcasts. It's single best idea