Spread Widening

Wes: It's been a challenging start to the ear with spreads going wider, both for investment grade and high yield. What do you thinkis driving this? Is it a deteriorating macro economic embironment? And then how far do you think it might go? Victoria: Yes, i think it really is a reaction to the central banks. They have been saying for a long time that these inflation pressures are transitory. Wes: The volatility we are seeing currently in the markets is a concern not about the end level of where interest rates are,. But fact that we are seeing this volatility and concerns around the speed of tightening.