“So when? Well, once there's more certainty on a terminal rate and the shape of the yield curve, then we expect more deployment into fixed income.”

In context

“come allocations with higher-performing active, alongside of ETFs and private market strategies. In particular, right now, clients are focusing their opportunity in the short end of the curve, and of course, in private credit. So when? Well, we have historically seen a rebound in fixed income following rate stability. And this year's yield spikes have been mostly from market re-pricing and policy rate expectations. There is a lot of concern over US debt levels and large treasury issuance, and investors are demanding a higher premium. So, if we go back to the periods immediately following the taper tantrum in 2013 that Larry mentioned, or the Fed pause in early 2019, the industry saw a very quick rebound in fixed income flows. Both ETFs and active fixed income funds were the beneficiaries. So when? Well, once there's more certainty on a terminal rate and the shape of the yield curve, then we expect more deployment into fixed income. And I'll recap it. A slowdown in short-term issuance and more balanced term structure of interest rates are the indicators we're looking for in anticipation of accelerating demand for immediate and longer duration fixed income. Operator: Your next question comes from Michael Cyprys with Morgan Stanley. Please go ahead. Laurence Fink: Good morning, Michael. Michael Cyprys: Hey, good morning. Question on M&A. Larry, you've suggested that you're open to large transformational M&A. I was just hoping you can articulate why that is the case. What's changed versus a couple of years ago, as I don't recall you mentioning large transformational M&A couple of years ago? Maybe you could talk about some of your objectives and aspirations there. And if you could help clarify what might be the focus are”