And look, if they’re not with us for deposits, we want them to be in our DRIFAS money market fund complex and be kind of using our products and services. So we don’t want to lose the cash, we can put the cash into other products. So I think we feel very good about where the deposit franchise is now. We feel very good about the pipeline of activity that’s coming our way, but who knows? And we are prepared and risk managed to a higher for longer continued QT, et cetera, et cetera, et cetera.
Robin Vince: And Gerard, I just add one point to that, when it comes to the rates markets, we’ve avoided trying to have a crystal ball on exactly what it is going to happen. We said we think resilience is a commercial attribute for us. You highlighted the benefit of that resilience that we saw earlier on in the year as clients really came to us as a safe refuge and obviously we’re very happy to help them with that. But that also means that we have views about what might happen. We have views about how we position our balance sheet, but ultimately we are positioning to be able to deal with any of these eventualities. I was sat on a trading desk for the first 10 years of my career, and the current level of 10-year rate is kind of at the bottom end of the range over that period of time.
So there’s absolutely no reason why the curve can’t move further from here. It’s moved 100 basis points since mid-July at the 10-year point. And so, we are positioning ourselves to be able to be adaptable to however the world is going to unfold. And Dermott commented on that when it came to our capital ratios earlier on. Now there are some things that are played out exactly as we thought, other things that are played out a little differently. I think the Treasury has done a very good job in coordinating with the Fed as they have ramped up the issuance of bills in particular, and that has worked very gracefully with the roll down of essentially $1 trillion at this point of the RRP. So the interplay between reserves, between RRP, between the very high levels of issuance coming out of the treasury.
These are all significant inputs, and our data shows us that there’s actually been less foreign buying in the treasury market over the course of this year. And so there’s going to be a supply and demand dynamic that’s going to occur further out the curve, which I don’t think anybody can predict, but you certainly have to be ready for the different ways that can play out.
Gerard Cassidy: Great. Thank you very much.
Operator: Our next question comes from the line of Brian Bedell with Deutsche Bank. Please go ahead.
Brian Bedell: Great. Thanks. Good morning, guys. Thanks for taking my question. Let me just add a nuance on the net interest revenue by segment. So just the security services versus the market and wealth segment, it looked like there was more pressure on the security service business, NII, versus the second quarter. I was wondering if that is more of the low in NIBs that you referenced, Dermot, in August, and if you think that might just normalize as we move into the fourth quarter. And I guess, and/or are you doing things internally in terms of the growth initiatives that you just talked about, Rob, in a couple answers ago that might accelerate the NIA in that segment much more rapidly over time?
Robin Vince: So let me deal with the first question. So I would say there is nothing really noticeable underneath the hood that is nuanced, that is different by different segments. Like if you think about asset servicing, our issuer services as a segment made up of three businesses, asset servicing, depository receipts, and corporate trust. Corporate trust as a business tends to attract a higher level of NIBs due to the nature of that business. Q3 would have been a seasonally quieter period for that business. Debt issuance activity was more muted. So that would explain a little bit of that. And asset servicing, let’s just say how clients are behaving with us at the moment in the ecosystem, but I wouldn’t really call anything out that is kind of noticeably different. And we kind of think about our deposits as one platform, kind of centrally managed under one roof, and that’s how we kind of manage it.
Brian Bedell: Okay, great. And then just maybe just to follow up on the, actually in the other investment and other revenue, there’s one area there that’s been growing quite nicely sequentially for now three straight quarters, that’s the other trading revenue line and the size of that is now — if it continue with this type of growth the next two or three quarters you’ll be approaching your FX trading revenues. Just wonder if you talk about the drivers of that and whether you see that type of growth path continuing.
Dermot McDonogh: So look, the key feature of that business this quarter as it has been all of this year really has been the strength of our fixed income trading. You do have a little bit of fee capital gains in there as well, but it’s predominantly the fixed income trading. So we feel very good about it in the overall kind of scheme of the quarter and the results. It’s a small number in the big scheme of things, but we like what we have there.
Brian Bedell: Great. Thanks very much.
Robin Vince: Thanks Brian.
Operator: Our next question comes from the line of Glenn Schorr with Evercore ISI. Please go ahead.
Glenn Schorr: Hi, thanks so much. I know we’ve touched on this throughout the question, so you can be brief, but I want to put it in a different package. So not lost on you, we’ve seen a lesser ability to predict or control client behaviors from some of the peers when it comes to all things deposits. And so, I don’t know if there’s a way to give it the attribution, but is there — is it all related to your business mix and client base? Do you think your consolidated deposit efforts have actually moved the needle? Just trying to get inside your confidence relative to what we’ve seen elsewhere. And I don’t know how much of that is depletion of non-operating balances anyway, so now you know most of what’s left is operating. So thanks a lot. Sorry for repetitive.
