“In terms of the pace of interest-earning assets, our priority is to pay off the supplemental borrowing. And so as we continue to prioritize that, it's reasonable to expect that our interest-earning assets would decline.”

In context

“ng my questions. Just a couple questions, Peter, for the path and thinking about NIM and the scenarios. Number one, I think you referenced that these scenarios are based on the dot plot, but you also referenced the forward curve. So maybe could you clarify which rate assumptions underpin the scenarios that you laid out? And also, how should we think about forecasting the interest-earning assets? You referenced $11 billion to $12 billion of principal? Is that the pace that we should be thinking about through much of 2024 until that wholesale borrowing is paid down? Thanks. Peter Crawford: Yes, thanks for the question. So the map out the illustrations are based on the dot plots, which again, so three cuts over the course of ‘24 and I think it's 200 basis points by the end of 2025 of easing. In terms of the pace of interest-earning assets, our priority is to pay off the supplemental borrowing. And so as we continue to prioritize that, it's reasonable to expect that our interest-earning assets would decline. Again, doing so, you can be in a situation where interest rate assets are declining, but revenue is increasing because again, we're paying off those supplemental borrowings. Of that $11 billion to $12 billion of quarterly cash flow from the investment portfolio, a portion of that is principal and then, of course, a portion of that is interest. So I wouldn't assume that the interesting assets are going down by that, necessarily by that level. But I do think it's reasonable to expect that there will be some decline as long as we have the supplemental borrowings outstanding, we're endeavoring to pay those off as quickly as possible. Operator: Thank you. Next we'll go to Dan Fannon from Jefferies. Please go ahead. Dan Fannon: Thanks. Good morning. Another follow-up here, Peter. Just in the co”