“Our fixed rate securities are going to roll down over the next, a decent amount of the fixed securities, I think it's a quarter a year rolled down over the next couple of years. And that gets us a pick-up of 200 basis points to 300 basis points.”

In context

“the client behavior that you've seen that gives you confidence that this 20% of what you saw in August was a trough? And if we are in a period through next year where there are no rate cuts, it's higher for longer, like, where does the negative surprise come from, if any? Dermot McDonogh: Thanks for the question. So, look, this has been a journey for the last 15 months. We took a view at the beginning of last year that the Fed was going to hike quite significantly and we positioned the balance sheet in a way to do that. And so, when we kind of talk about deposit, I think it's very important to look at both sides of the balance sheet at the same time in terms of how we're positioned on the asset side. We have a lot of the balance sheet in cash which benefits from the higher interest rates. Our fixed rate securities are going to roll down over the next, a decent amount of the fixed securities, I think it's a quarter a year rolled down over the next couple of years. And that gets us a pick-up of 200 basis points to 300 basis points. And at the beginning of the year, we did forecast a kind of mid-single digit decline in deposits. And that kind of bottoms up analysis. And also, it's important to remember that clients of BNY Mellon are not just with us for deposits. They come into our ecosystem. And just remember, it's a $1.3 trillion cash ecosystem that we have and they come in for a variety of different reasons. It's a portfolio of businesses that give us our deposit makeup. So when we look at it at a portfolio level we get a lot of confidence around the stability of the deposit base. And look, there were a lot of gives and takes this year through the bank turmoil in March and the debt ceiling impasse which benefited us and that's kind of moderated and those deposits have left for higher yielding opportunities. But we”