El-Erian: Not Much Yield Left in Public Markets

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June 25 (Bloomberg) -- Bloomberg View columnist Mohamed El-Erian discusses the search for yield and why investors won’t find it in the public markets. He speaks on “Bloomberg Surveillance.”

Neutral.

This idea of financial repression for a long time, where do i find yield if i'm going to have low yields for years, if not a decade?

So i think the market is now incorporating this notion that policy rates are going to be lower than they would have been otherwise, and certainly lower than historical averages, and that's correct.

Part tv is financial repression, and that is how you overcome a debt burden.

Part of it is that growth engines are less powerful these days n. terms of investors, i think that investors have gone a long way in searching for yields in public markets.

There wasn't much left at this point, tom.

If you are investing at this point for yield, you really are anticipating that things will be steady for a long time.

So i think increasingly you're going to see search outside of public markets into private markets.

That's why yield is going to be obtained from here.

Adam, you see that with bank of america going to a run rate of 2.2%, as dr.

El-erian said.

In fact, carly fiorina, we are going to get the revision for g.d.p. this morning, in theory, negative 1.8%. what's your take?

Do you think it's more than weather?

Yes, i think it's absolutely more than weather.

I think we have structural issues now in this economy.

We've had too much crony capitalism for too long to be very honest.

All this complex tax code and regulatory structure makes big companies bigger, because they can deal with it, but we're crushing main street entrepreneurialism.

The brookings institute just came out and said we're now destroying more businesses than we're creating in this country for the first time in history.

Fewer small businesses are starting.

More are failing than in 40 years.

And that's important, because that's where job growth really come from.

Mohammed, i want to get your thoughts on a topic that's in the papers today.

France very upset about the b.n.p. paribas sign that's being negotiated right now.

President hollande threatening to block the trade agreement, threatening to complain r. we on the cusp of a trade war here?

I don't think so.

I think that this is domestic politics playing out.

If you are in the process, they feel that they're being singled out.

The reality is there was very little patience for banks these days f. a bank is caught doing

This text has been automatically generated. It may not be 100% accurate.

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