The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: I guess my first one would just be to hone in a bit more on issuance and the outlook for '22. You spoke a little bit about this in your prepared remarks,
obviously. But could you spend some time just kind of talking about the biggest swing factors that could affect issuance this year and maybe how
you think about the range of potential outcomes around the 2% issuance decline figure with those factors in mind?
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: Great. That's really helpful, particularly on leveraged loans. I guess for my follow-up, I was just hoping you could provide an update on the ratings
business in China, expectations for when that could be material. And I guess within that, how much growth in that business or in that market are
Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst
: So Rob, I'll just follow up to the question that you just answered, and I was wondering if you could actually provide more detail around what is
baked into your issuance assumption because I would have expected issuance on a more normalized basis growing more in the low to mid-single
digit, plus you have pricing power, recurring revenue growth and getting more to mid to high single digit over the next few years versus mid-single
digit over the midterm. So any color on that front will be helpful on the issuance front.
Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst
: That's very helpful color, Rob. And Mark, maybe if I can ask a question on the multiyear investment, thanks again for that slide with the detail there.
But as we think about in '22, we're going to have a total of $300 million of organic investment. How should we think about that going forward in
'23 and over the midterm? Should that come down as we go from an elevated organic investment to a more normalized investment cycle? And is
that the key driver for significant margin expansion on the MA side?
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