The firms believe Federated shares to trade at a discount in the coming quarters following the current volatile economic environment and expected increase in fee waivers, which curtailed earnings recovery at current level. The risks faced by Federated in the coming quarters include the federal government norms that might change the nature of money markets as well as the crucial effect of debt ceiling negotiations and investor’s reaction that would remain negative catalysts for the stock. However, the firms believe that the stock has attractive defensive characteristics and earnings leverage to reduce the fee waivers, but it is difficult to stay positive at current scenario. Therefore, despite positive operating leverage and fixed income and money market inflows, they remain concerned due to increasing fee waivers and equity outflows.