Thank you for having me on Sam and happy Halloween. Really, if you look back in the past week, I think the biggest event obviously was the Fed meeting. In terms of them cutting, I don't think that was too big of a surprise, that was largely priced in. But where we got surprised was on expectations going forward. Chairman Powell threw cold water on the idea of another 25 basis point rate cut in December. Our team had expected a slower pace of cuts. Inflation is still elevated above the Fed's 2% target. There is some softness in the labor market but obscured by the government shutdown and lack of data flow. Going forward, we'll watch Fed speakers explain their reasoning, especially dissent like President Schmidt who opposed a rate cut citing elevated inflation.

Hopefully by the December meeting, regular data flow resumes but the shutdown may linger. The market won't get normal data cadence. Next week we have the ADP report with expectations low at only 25,000 jobs gain, following a negative print. That will be important to gauge labor market direction and could shift Fed expectations.

Despite uncertainties, there are opportunities. The 10-year Treasury yield is about 4.1%, hovering around 4%, which is attractive historically. Although yields have declined in the last couple of months, they remain elevated relative to prior years. For income-focused investors, we suggest a bias toward high credit quality given tight spreads—additional compensation for lower-rated issuers is not compelling. Focus on intermediate-term duration—around six years—and consider locking in yields in this environment.