ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

What did you make, if anything, of the last Fed minutes, where there seem to be some consternation among some members about ending bond buying purchases at the end of this year, I mean, is that really realistic?

JON MACKAY, SENIOR FIXED INCOME STRATEGIST, MORGAN STANLEY WEALTH MANAGEMENT (ENGLISH) SAYING:

I don't think so, I think basically what you need to look at is what does Ben Bernanke want to do. He will lead the charge, he would inevitably going to get it created as a discussion, there's supposed to be people in there, who genuinely you'll see one if not a couple of members of the Fed disagreeing with or at least taking issue with quantitative easing or the policies that they're conducting. So I don't think it was that surprising but a lot has to go right for the Fed to end their program. They basically set these targets, inflation around 2.5%; unemployment around 6.5%. At the current pace of job growth, that seems pretty unlikely that we'll hit that before the end of the year.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

Jon, what's looking different to you in the fixed income space in 2013? Do we see changes in spreads in some other products or does 2013 play out similar to the past year?

JON MACKAY, SENIOR FIXED INCOME STRATEGIST, MORGAN STANLEY WEALTH MANAGEMENT (ENGLISH) SAYING:

I don't think there's any way it does. I mean, we've gotten to a point now, we're getting the kind of returns you've got in fixed income over the past three to four years it's going to become very, very difficult. It's become almost mathematically-impossible. Yields have been pushed down over the last four years. We're at lower yields today than we were at the beginning of 2012, 2011 and 2010. We're also at, to some degree, tied to spreads, so getting that additional return, quite frankly, equity-like returns in fixed income, with fixed income kind of risks, I think those days are over. So what we're suggesting people do is you've really got to pick your spots, you've got to be more tactical about how you invest and that should help you generate better returns, but you've got to lower your expectations.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

So what does that mean specifically, corporate debt or high yield or?

JON MACKAY, SENIOR FIXED INCOME STRATEGIST, MORGAN STANLEY WEALTH MANAGEMENT (ENGLISH) SAYING:

Corporate debt is our favorite spot right now in the fixed income universe. We don't see much value in treasuries; you can trade the curve, things like that. But what we're suggesting people do is move into investment-grade credit, where you can get better yield than you can in treasuries, you can get lower risk than you can get in the equity market, you'll pick up some decent income, nothing fantastic, but decent income, and then you'll see opportunities arise as the year progresses. We'll get negative news out of Washington; maybe we'll get negative news out of Europe. I'm not suggesting we're looking forward to that, but that will inevitably happen, and when it does, maybe high yield becomes more attractive, maybe emerging market debt becomes more attractive. So I think it's not a very exciting strategy, but we're saying stick to the middle of the road, stick with investment-grade for the time being, and when opportunities arise, maybe then you reduce your exposure on investment-grade, you add exposure to some of those higher beta asset classes.