MarketAxess (MKTX) 24 Oct 182018 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded today, October 24, 2018. I would now like to turn the call over to Dave Cresci, Investor Relations Manager at MarketAxess. sir. ahead, go Please

welcome MarketAxess and Conference Quarter Call. to morning, Third the XXXX Good

Rick Chief financial provide Chairman review the Officer, and McVey, For call, Chief DeLise, and trends our for Financial quarter then Tony on review the the Executive and update will the an will in businesses, results. highlights will Officer,

that, These may remind statements. by and regarding call may today's Before the over call that uncertain. beliefs are I nature, financial those from company's to forward-looking their you is statements statements. The turn future results forward-looking the indicated in events Rick, differ let me actual what represent include company's materially condition

For is December to you this quarterly release, also Form affect factors which year of a XX, factors was risk of in Web future XX-K read and the our and the available risks that would the Report XXXX. earlier Annual our ended for statements description disclaimer discussion in site. could the on earnings now of results, direct some issued the company's on please our see I forward-looking morning

let Now, call turn to me Rick. the over

XXXX. $XXX we morning was driven strong products, Good you us morning, joining discuss third billion compared third robust Open of continued QX thank and trading quarter share This of results. up quarter Overall, for our results across market volume by XXXX core increased to all and reported our to activity. Trading XX%

same share year. of up reached market X.X%, high-grade period was a market high-yield and the share last X.X% estimated Our growth, Estimated in last from from strong U.S. XX.X% up XX.X% shows year. record

$X.X to diluted of in Hudson for quarter of duplicate in expense up to EPS $XXX our was were including million, $XX for rent million Expenses compared QX Operating XXXX. income and offices revenue the million XX%, $X.XX. Third new was yards. XX% up million, $XX was up quarter X%

to the We adoption year. new expect of end by headquarters continues Open accelerate. our to to Trading the move in

Additionally, the conditions. both provides improved saw rapid spreads into third better were volumes during on quarter. volumes emerging market The conditions Credit market product Market declined on credit Overall our combination trading and the conditions growth volatilities core four trading for Slide of quarter. update XX% October. the tighter, in September yields, widening spreads, were quarter. and for and from higher second environment fell, and trading Eurobond to elevated market an led activity issue in much a treasury average business. credit has new soft

daily million share Average across trading billion. up growth strong, volume While in XX% billion, price XX%. of from or up Trading XXX,XXX represented were last in approximately in XX% transactions responses, up in level was the five market months, gains XX% Open Open quarter, mixed Open Trading. also platform been well completed quarter. future the to $XX and price-makers year. X.X Over quarter, record our products drove a during accelerated liquidity for and update recent Open position have the provides the of conditions increase the Trading Trading over company third year Open $X.X volume Slide has been in XXXX. third an on on from a was providers QX, QX, growth. volume XXX% up activity representing XXX,XXX Trading

approximately cost estimated costs transactions open protocols. over the savings points quarter of the through saved year. provided X.X from when firms system, a an X,XXX completed last Trading high-grade benefited up average XX% $XX During and in million through trade. transaction the from they of transaction yield third basis U.S. Participants Open Open on Trading through Trading, takers firms at quarter, over Liquidity XXX Open one completed prices least

the our breadth new update provides the and Importantly, products competition. four as on liquidity clients this We of and six global from dealer depth embrace source core all across an and investor believe rapidly Slide product our MarketAxess volume Open diversification. Trading solution geographic of is credit growing differentiates liquidity.

led Our market U.S. year-over-year high-yield X.X% high-yield XX%. a increase volume product experienced of another quarter to growth. Record of of rapid share estimated

for continued XX% Our impact trading a volume year. MiFID XX% a business leading positive its up EM the European European strong II had and volumes clients from increase Eurobond XX%. performance clients. behavior, client were has in European with were to on up volumes year-over-year,

for continuing Brexit there our hard a in preparations the are We event is exit.

growth both the in any on the staff EM on with in emerging regulator progressing our volume system, and well senior with office avoid client markets Global adding our over have market trading underway trade We as was markets to applications that an are debt firms the are changes the exit Client external are as platform. XX% year-over-year. currently active local the Amsterdam, as in international scenario. strong Dutch institutions number XX%, in now to representing expected. XXX increase of disruptions new documentation We XX up

trading significantly the growth for our international in credit footprint expands growing Our shareholders. long-term opportunity

let call to turn Tony over Now, to the greater results financial me detail. in the discuss

weak U.S. share share trading to Rick. that trading as were corporate U.S. categories. estimate billion Healthy is high-grade for European spite In the were XX% markets, volumes, $XXX volumes up for market summary volume, market down Estimated markets high-grade levels. high-grade up trading high-yield estimated than bonds Year-to-date more XX% main is volume XX% market third third and were of third volumes the year-over-year. revenue ahead up for credit XX% up of were growth in growth quarter, one the volumes high-grade of high-grade U.S. resulted increase market We days emerging bonds, On in in gains behind market X% percentage important to in Eurobond TRACE estimated aggregate. across growth earnings other volume volumes point. market and quarter commissions. market share accounts a the market than X% our The October, the slight estimated volume, year-over-year. driver XX% was U.S. XX% trading quarter well slide XX% U.S. U.S. category in quarterly trading of estimated running similar uplift summary the year-over-year. slide year-over-year. remaining of volume. and uplift level. in high-yield Please flat a volumes are you, turn six we the Thank high-yield was increase X% our provide is share seven in With in running ahead emerging quarter more volume product performance. A level, eight, in share high-yield and in Overall across our

increase revenue. a revenue were we contracts accounted income flat data was new $XXX,XXX II $XXX,XXX New in The was services of and and year-over-year. Expenses services increase XX% in year-over-year, MiFID information due services to up customers. post-trade for combination the operating principally

new Excluding third XX.X% build-out was corporate in duplicate City, in quarter, rent operating of income year-to-date. the rate offices phase the X%. expense company's New York and XX.X% The the effective up recognized during was tax

million provisional we quarter, Jobs excess XXXX. related the to share-based recorded charge to a $X.X recognized Tax and Cuts During of Act, benefits and awards, compensation reduction in a tax the $XXX,XXX

our are and range, tax We XX%. now will rate between guidance XXXX updating and for be expect effective full-year XX% the

million. overall transaction stable trading fee by factors. commission flat increase fees several variable slide of nine, out $X.XX was volume was Our caused diluted XX.X revenue a have our EPS fairly fees per million we as in laid were lower year-over-year capture Total On diluted offset count volumes the shares. by share trading on and XX%

quarter fee of up third in several revenue compared fees. high-yield the variable migrations new million to and our to Distribution distribution transaction were XXXX high-grade the First, implemented shifted $X.X plan of third from dealer fees quarter fees XXXX.

the million fee volume capture. traded platform lower on Second, That no lower of the in percentage a sequentially, maturity years our maturity Eurobond third, Years U.S. And quarters. past year revisions in to higher each change fee enacted yields the this and plan resulted caused size in said, three there and per fee reduction earlier fee to capture. U.S. trade of high-grade Eurobond the hasn't of significant varied was was unchanged bucket. high-grade bonds in

sequential little fee Our capture was changed category's on a basis. Credit Other

second and little and other capture in consistent percentage Eurobonds, individual derived quarter, volume the higher markets was there of category So at emerging was XX, Slide change levels. in with high-yield credit product the the Sequentially, from tradeshow fee infrastructure The offset flat expenses on the with spend. was expense expense as amortization and you software lower XX%. by and in was increase provides advertising detail. investments year-over-year depreciation and expenses were

increase Despite soft Excluding X%. to charge, the and expense the technology, was conditions, we continue the invest infrastructure. duplicate rent market in people,

$XXX XXXX million of inclusive year-end we expenses are million September million, the provide compared $X to Our investments million XXXX. approximately On end rent Cash XXth and in of full-year XX, balance near expense. guidance $XXX bottom at sheet to duplicate of the range information. $XXX as of million slide to projected were $XXX be

of cash dividend quarterly at the we and third XX,XXX cost $XX quarter, a million. shares a repurchased paid During of million, $X

construction Trailing on of associated million results, $XXX the the space. New cash million. approved is a XX-month $X dividend. free record a has spent our flow with $X.XX York these Based build-out on quarterly Board regular also City We office

Now, to closing comments. back some Rick the for let me turn call

Tony. you, Thank

increase market provided across and gain Trading. all pleased for growth We emerging over our growth products to foundation last credit in much the priorities Long-term several markets, share high-yield, the The quarter. for including in months are with momentum; overall Open the estimated during volumes better market a overall growth continue business.

the open be would line to questions. happy I Now, your for

question is with O'Shaughnessy from [Operator you. Thank first Our James. Patrick Raymond Instructions]

open. line Your is

guys. morning, good Hey,

Patrick. morning, Good

Patrick. Morning,

one efforts trades space? of of go try around that I takeaways challenge about think MarketAxess Can open think the from forum some the market after that complex conversations of is key and recent conducted having the electronically. So more taking I your from to talk you coming to steps some aggressively the was large

Sure.

information continuation the we've reduce system I in think is leakage. to making that a changes concerns been of around this

identity in in trade a work talked bit sizes trade, to in have the opportunity to interest done of we've quite allowing the any So as lead we've do system and participants could about so from offsetting up trade system with past, and size on there. the they Axess work that Patrick,

protocols see growing of liquid think sizes market will start the execution trades is million exists more $X broken and sizes. of toward would the watch liquidity smaller trading. talking being faster means period that in in trade introduce other trend into participants large pool a whether part to and bonds the down highly in the of bonds to then different are to trade We under first we issued that I newly And about for

that what the maybe benefits environment looked volume lower during does expense you bonus -- that. last thank I tracking in were the expense about an was for actual maybe around the employees XX talked how add quarter the like quarter-to-quarter, you flat period-end you that give had to should about What so And we and basically count, you for think question Tony. know compensation quarter. Great, employee as then and third accrual quarter?

Patrick, so things the quarter-to-quarter Yes, the on what happened and on comp there then two benefit. in and headcount,

in On up end ended the days another don't the from here albeit but with year, sitting headcount, [ph] we was of quarter, up the here of headcount end have sitting are with will second right around We're to XXX the the fourth which today people, start what expect positions additional we happen through attrition, we rise add. quarter. on we do so the where XX XX we people at XX know

comp benefits quarter-to-quarter, down accrual quarter-to-quarter a salaries The conditions just formulaic; to. have that bonus piece, accrual increase was in the But see increase It And do it we're $XXX,XXX. performance. but cash a it And of looks the referring around tied On around was it and you the reflective bonus to was market an is lower. was bonus and should benefits. there. accrual is that's slight $XXX,XXX increase like you operating

QX, saw So if at you there. to healthy decline you look volumes pretty QX market

not comp when look factors that So some necessarily apparent line were there. at in but on benefits, there you offsetting and

helpful. All right, that's Thank you.

you. Thank

question with from is Repetto next Rich O'Neill. Sandler Our

open. is line Your

Rick. morning, good Yes, Tony. Good morning,

Rich. morning, Good

quarter-to-quarter, increase the the on is in guess in biggest was the Trading quarter-to-quarter high-yield. I the the in first not there, uptick And congrats percentage on it percentage, Open seems but Open Trading. I'm question And like year-over-year looking

bucket more up us went like up or market percent Trading? from you that went tell of dynamics but others Open what in increase like quarter, The high-yield the an big Can so, XX% prior from the to that XX%. drove the a in by high-yield

that to the terms I'd a providing of is by things shows couple percentage highest Trading liquid in What less highest Trading And product on percentage tend I Open Yes, markets product of Open value observed that we've that there. OT. less the the of have that credit liquid in think areas. comment is

important is better So that's a with a market, our been we've way and there participants in less that very high-yield. technology in as case like just reduce liquid and the connecting costs high-yield, seen market take-up transactions

in around with thing activity we've makers The that's is the trading out in relevant Rich, others, and market about talked point electronic growing I'd they're high-yield. you and other ETF especially

businesses activity in electronic that impact in to as do the terms So overall volumes, of trading continue only those also the not grow of embrace you OT. and but see

Thanks, I as ETFs would Trading is, Rick. ex also well, on the If ETFs, there. the is just just and some auto assume would Trading I trend A follow-up assume on -- Open Open see pick the well, auto you one that ex the drivers -- [ph] of comments auto ex up the increasing? drives

actually would those I Yes, separate two things.

it's different at but I right a auto execution growing, think there. absolutely You're slightly driver

seeing the And really I trading gone to to transaction they're It's those the outcomes have low-touch, side a system. on objective is now an back level whether moving on, on able that they really to where improving efficiency. price because know, in MarketAxess data and of disclosed the how costs. trading clients auto-execute they're willing with that the this around preset important for by from it's is relevant the early of automation trend And trades. think willing with even equally about grow use that high-touch open a strong the a new I pre-trade And no-touch, is they're to tools It meet are reducing that do efficiency so from which set laser-focused would look and come dealers you we're one side do the system. investors parameters trade clients' or of to into expectations. they As an trade. And buy help all the to responses perfection it really buy auto-execute does if it's

is the Got it. on environment. question, Rick, last general the And

but from September. And more August and even October. your at I And July then in volatility October. you capture look know covered that have different you've you volatility, think market I you have seen, you covered it. did talk comments XQ, you are But I the like a like if about If these were and compared to missed story October. fee in trends September, higher the may this, you can when I share think,

much like the high-yield, if September. October, volumes at look Well, you TRACE for and high-grade very

than volume about is October, and So August. October the in approach what July the as observed of we we end and September market rate run XX% higher

some to have did the soft we during And mix. October is a better. on continue the And market and market end have our capture. we'll product So significantly months. summer fee The high-yield in have out very product the fee the success at that and period the primarily Tony drive volumes market But comments September the to about going volumes have been depend mix capture made October, we of will overall.

answers. for Understood. Thanks Thank the you.

you. Thank

is Kyle question next Our KBW. with from Voigt

Your line is open.

Thanks Hi. taking questions. my for

Good morning, Kyle.

Good morning.

the MarketAxess want this to thoughts product, more on Composite+ into auto of how trading but really follow-up so Composite+ ecosystem. the fits future updated of on on and the maybe a Just kind ex, just

think functionalities I also the some built used to generating other Composite+ opportunities help could facility but be of are being ex for maybe there into as these buy well? side, it auto revenue

about Sure, XX,XXX investor, happy is in a embracing now one. that we're dealer, global Price clients Composite pleased real-time take mid-market to see really to Plus, which No, both securities.

pre-trade that places we right process. valuable price now, are other time. And discovery much could tool the primarily price been used think There products; additional indicator, go in an I over tool. incredibly our So, it's think like as many with data I trading

analytics could indices start relevant even it and see I And valuations become well. already some as think it's think impact TCA you in starting for way to that clients. I in our to

into So a that, has lot the of Composite around been effort Price really and client take-up encouraging.

the You're absolutely clients data right, they comfort of one are auto-execution give utilizing that tools does when technology. it's

execution, can as in we're so So more execution system can use on use we auto they that well. tie the to provide auto of the seeing more the data to the our clients growing it does that

were that back over just Can talking in those protocols, help market participants us Okay. and open market. of expect then of streaming as of versus growing time there protocols in were And and you they are price the how you're understand forum, adoption out some to looking views or streaming the what going developing terms next price years? we of adoption protocols streaming prices over the five RFQ -- or maybe Thanks. three the

of investors price here. capabilities operate execution. question institutional a with But what Sure. investors prices those really so more a think the already RFQ I achieve tighten to the to go date, efficiency. is highly to have possible it able technology perspective. mean streaming stuck which And markets offer algos ready direction does do sophisticated liquid in achieve up, that to combination an a the streaming when more greater because streaming and do continue through technology the market what we to best relative them institutional and especially end it's as technology dealers could go are get And to that are from a quotes for of the ready market competitive environment their and we price in have I like more indices, trading use do then look It's of of to CDS to markets we RFQ. and to strong liquidity with certainly create

you. Thank

Thank you.

Blair. Our from is next with question Chris William Shutler

is line open. Your

morning. Hey, guys. Good

Hi, Chris.

just question want to the earlier understand make I on dynamics and back a yield high here. to I go sure

really high trading last has quarters. of accelerated the in open the couple yield So

heard XX to up understand points the I what previously, it's majority think comments driven over percentage the vast are XX two points gone that makers there up market is two acceleration factors? has gone I want or ETF, ETF are other I years. on last your in quarters; just it

important been investment the makers obviously better year recently other environment their it's really and growth trading And a investor And a trading. see only ago, the relevant to are factors environment we environment of overall on open from our ETF are very it's high funds form There equally liquidity dealing managers. key yield a a volatility the as kind yield in platform. for makers market high creating relative liquidity specifically ETF for new value an side more trading high were clients in market one But The clients. yield buy of better and trading of trading benign flow. has a lot out movement with took more with for which adoptions

I it's and greater makers combination trading a involvement conditions the from by investment think So then of in the high market not adoption yield. improvement an ETF only managers, market for

out roll you you see those Okay, consulting on trading are that then that kind around should actually process, trend developments? Rick. issue functionality of desks the we kind talk you new are on functionality new doing and as discussions of the of when yes, on work to expect And the working the with addressing make sense, discussions you the around side some about the buy

set like anything Yes, we there timetable that is no do.

depending We new see in more newly are to be And it trading, active issued add issue out I faster, we value those dealer trading. And terms roll protocols talking new we could a on protocol we for to will in mid-stream to investor think around are of back at ready hear clients we and out. conversations. both what bond if

place. are the but discussions there no set is So taking timetable,

a Okay. lot. Thanks

Thank you.

is next Our with Compass Allen from Chris Point. question

is line open. Your

guys September, are Good is lately commentary looking in improved on it's Eurobonds? bit morning, I'm source seeing wondering in summer there been been and Obviously, there in any been emerging commentary little on have be so strength September the periods a has period, of know, guys. has in And at things any you commentary the Appreciate flatter. trending how you to would a environment for Eurobonds we if markets helpful? October, the

are for some on the quarter? third So Chris, for or you comments October looking

more the terms focused on in of kind comments of you high back-half and October, like are Yes, into in I picked mean those something of September that things yield. of grade up high just noted continuing more

how the wondering are trending as well? buckets just other So

You quarter in very down volumes that emerging fact despite markets were that we the third a from had the big both saw had we trading pickup quarter Eurobonds market volumes. numbers good in in where

share market All of that came gain. from

market still think I is thing this one that volumes right -- to more are Eurobonds now, than points for that particularly market struggling. emerging the

the some for we now. investment third that for high not volumes that's right yield emerging case markets U.S. even or So XX% gave grade market running above commentary are October and the quarter, more

that of the volume So type healthier that not are while third than pick you quarter, one it's up. seeing

that So thing that will be is different one into running October.

that can U.S. one, talked high the On similar last euros derive on we that grade estimates the based to tracks to about and others be from and sources, we the Chris, look yield. euros look for more U.S. increases

saw we about things starting maybe little treated on then Got all? trading in think it, perspective just the trying just like up? are you overall and seeing down be from an the in it's of a first Or to a better activities or entrants slow little are new kind Just at client are maybe bit kind quarter quieter these participating changes and behavior coming got of has bit and to environment this periods? picking year this and could

X% in of bit clearly And I strongest one client year-over-year the ever show and four products four change behavior. would might high core gains for in the of are the have market by our it's ever but this euros unusual the this And shaping than be share one yield to overall. years what share look in year across we gains two little about that you gains share based best being be had. driven in grade collectively, broad it market is reflect up year-over-year. even high for the seeing products high separate fact up EM, if grade, but the share more And that a trading a we is

the change taking investors. in that's markets and ongoing by the electronification So both that place trading the and of behavior dealers credit reflects

It the and The is more like year and ebbs the obviously levels. can't control And QX toward September like rebound. are and environment. that. market second then for various factors. seeing And and it It hit it's part we with trough August flows it October we in looks back July

separate two So, those I factors. would

look Hey, trends all are product. products engaged is jumping on more this of across at term Open bigger you trading open longer piece know, across these we the the and but point, each volume. core trading where again is our There across particular have products. the client trading all bigger percentage of

products. We XXX where trading have that quarter trading and third in just more than the we clients multiple ended have hundred That's up now three products. past We the are more year. more clients up just clients or

and with the So network products just is it's just expanding. the all clients across engagement

Makes sense.

Thank you.

question with next is from Barclays. Our Jeremy Campbell

is open. line Your

Hey, thanks.

pricing mentioned of Tony, duration high of kind stable have in think And pretty stable you we quarter-over-quarter. bonds grade. So was I

So tighten? tightened if appreciate of of into extend either but duration a the the traded update here what's get quarter continuation or just in kind on are And year? volumes outlook next or the October duration, we guys volumes, next pricing October seeing of for you

Yes.

quarter in early obviously it's Jeremy, So, here. the

in seeing aren't duration change any We right significant now.

been -- -- The a product very to with of more look is third maturity not just are grade at yields big thing core capture we that wouldn't quarter. consistent pointed maturity. in be the years change where before capture But absolute Rick, fee around but are. the see and years We may October you mix the the And a in of and seeing product the this we is at as have that fee investment level four multiple products. the individual for and

fee one rolling that no product notes but individual So the product level would and overall faster influence the other than change. capture,

just then about -- more in of it, going I outside you I we what trading control from picture, market of high-grade little kind historically versus gains like the dynamic share. blocking market guys and year-over-year big on kind things targeted executing bit? Got kind open know, thanks, of of forward, have that and on potential expansion things and types guess you of should think bips back should some the like a and setting improve expect tackling of a shares under macro XXX

are little bit it's evident I know, gains up. when You share a our more of volatility think picks both,

be are new higher is a activity flow issues with there if share of. So of our is that are those have gains that extremely slice our when we share volatility on helpful a and ebb that gains would lower bonds active new also issue of you to new a period we newly currently know trace where embarking as share in and issued

now, issue and you is large on on, client with long-term system view So We metrics these hope from or playing And very trend I behavior game. broadly and market XX on momentum the very and Tony a on electronic the just there a impact, company that but healthy outlined a credit not that be going we're trading more the the work me. are some high-grade, see the just across new of will them, but take do long about I if about you the share this embracing think really clear has that where look years I will really care very five when to markets.

We share market the pleased story. we're in strong an really what with position incredibly have terms and we of see

apologize it. of Got then what to going referenced and I one tax be -- Tony, sense any we kind rate I And quick expect is one; you 'XX? if missed year into think to for XX this you I should but XX, the of this,

XXXX, we're not color. at today yet range, so give completed process definitive bit said Jeremy, the to give least you prepared that for but budget of we sure hadn't you Yes, I'll so a little

we XX%. on because have we would excluded know the benefits is difficult today, point options, XXXX, whether know here share it's rate today tax predict -- the tax jumping off based a windfall excess stock that those don't XXXX. benefits for to exercised. can price stock if be around tell here to of part year-to-date effective you vesting, be round tax share $X benefits that based don't So we of from the restricted difficult be really would this there stock and the look sitting But price the That's when in you today's the tax right for compensation, million. timing you sitting options January I will stock around

So again, XX%, jumping tax jumping off point rolling some -- budget's excess benefits. point complete, and off not

something be try get call, we range and to and January to than we'll a this less color narrow but give you. when more So, you for down XX%,

Thanks lot, Perfect. guys. a

you. Thank

Our with Jefferies. is Fannon Dan next question from

Your open. line is

maybe XXXX Thanks. -- is building think framework just to but budget that upon the expenses. I about know done, if guess, Tony, not you I us the give

You some talked next looking the we looked guess, just outlook in better about it about headcount -- Is initiatives some any -- on at we or I summer, fourth if about XX on of wondering environment quarter. as the think the spending if at the new doesn't think that's or you're the differently getting months. coming you there

Sure, this Daniel, mean, I we still investing for are expenses, is the I study on -- future. the

the you will the is term had if from platform, we're to exchange out, but the foreign has know, yet. and been again we've longer in tax and year five expansion continue haven't X% we're -- investing and we to about new will some about completed look annual related history geographic plans good We duplicate for going the and those more taking been on rate, geographic even And are know, that growth take suggest color account you probably out the out past of we we've but you as you XXXX, and still in you new into infrastructure. January, well two spend if increase in point. from -- more continue some color the early models we launching a the -- to -- you invest that's pull if January, rent regulatory give in at in XXXX, where change, on know, sort compound also you X% process impact protocols, that's least had years, expansion, this but expense just X% protocols. modeling I then about our and starting There's give pretty thinking rate

and we appreciate think know, right the but or you is and million that in been about rate of shouldn't guess, follow-up -- commentary the Got it. the we negative I of in still several just different as just And high-grade here something October resiliency quarters, think the last then has that's consistent a way fee a for transaction on about on having per impact environment, to a that it? on because duration there is think the higher shorter mix happening that I

you were you're one to some constant, for if matters, I've we're -- aside curve take in or node likely trade that floating isolating mix where factor million that environment. dealer yield leave color just one about like a all but decline million. see fee them Dan, change years every to per rate size activity some percentage in yield the the past per you and of across point, rising be all given matters, we $XX could know, some range it or in capture sort yield $XX something and and talking is realizing matters, matters, Yes, maturity those if

years capture, So again U.S. a fee around, see the there trade if there's that you influence maturity, capture else on would lot size, keeping decline dealer that you're of high-grade. many -- There's so mix constant, are things just a mix. in fee into but goes everything

thank you. it, Got

next is Sandler Our Instructions] [Operator you. Thank from with O'Neill. Repetto Rich question

line Your open. is

you. my answered, been guys, question thanks, asked has Yes, and thank

Thank you.

session I'd Rick back over call Thank you. today. the like McVey. conclude to does that for to And turn our Mr. Q&A

catching you much and joining quarter. up morning Thank forward very us again this next we you with for look to

does call. today's participation conference have thank program gentlemen, and now day. in today's and great disconnect. Everyone, your may Ladies you conclude a you for This