Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Mary Callahan Erdoes, J.P Morgan Asset & Wealth Management Chief Executive Officer from the CNBC Delivering Alpha Conference, which took place on Wednesday, September 29th. Mary Callahan Erdoes On Negative Rates Negative real rates are here to stay, 74% of the global AG has negative real rates, every single US Treasury maturity has a negative real rate and the time value of money is really nothing. And so those are all tailwinds to go into nearly every asset class around the world. Governments have no fear of debt and they're hoping that investors follow and also don't have fear of debt. And investors should have fear of debt, but maybe just not at this moment. Mary Callahan Erdoes On Market Froth The froth has continued, and the question is only time will tell how long that will go. You know, markets, as we know, they move well in advance of where the world is going. And so, it's just really a question of how patient investors are and with the time value of money being nearly zero, people should be quite patient with what they're investing in. Mary Callahan Erdoes On This Time Period Not Being Normal Since last year's Delivering Alpha, markets up 30 to 50% is not normal. Alpha in those numbers of 500 to 1,000 basis points is not normal. So, we're enjoying it, but this is not a normal time period. Mary Callahan Erdoes On Evergrande Everyone's talking about Evergrande as if it's a country. It's just a company – it’s not a small company, but it's not the largest thing that's happening in China. It's only 2% of the real estate debt market in China, it's only 1% of the China U.S. dollar bond market, and it is less than half of a percent of the China local bond market. And so, you know, is it a Lehman Brothers? No. Is it a Bear Stearns moment that leads to something that we don't know about? Maybe. But it's not as interconnected as what you're talking about when you think about the banking system in different countries around the world. Mary Callahan Erdoes On Europe And ESG Europe is well in advance of the rest of the world. Has been for many years. They have a first mover advantage on thinking about all things climate. You know, if you think about things that we're excited about here in the United States like Tesla, it's only going to be a couple of months before Volkswagen takes over as the largest EV manufacturer in the world, out of Europe, and will continue to lead the charge there. So, I think that Europe has a ton of opportunities.
