Corporate Credit Still Works: ABRDN's Hickmore

The video discusses the implications of quantitative tightening and interest rate hikes by central banks, particularly the Fed and the UK. It explores investment strategies in government bonds, corporate credit, and emerging markets. The impact of COVID-19, especially the Omicron variant, on economic activities and market opportunities is also analyzed, with a hopeful outlook towards the pandemic becoming endemic.

What is the expected impact of two interest rate hikes on the 10-year government bond yield?

• It will decrease to below 1.5%

• It will decrease to 1%

• It will remain unchanged

• It will increase to around 2%

In a policy normalization environment, what is a potential strategy for government bonds?

• Invest in short-term bonds

• Avoid government bonds altogether

• Consider shorting 10-year government bonds

• Invest heavily in long-term bonds

Which market is considered more attractive due to a lack of central bank tapering?

• European corporate credit market

• Sterling corporate credit market

• US investment grade market

• Emerging market debt

What is the potential outcome of the Omicron variant according to the discussion?

• It will cause a global economic collapse

• It will have no impact on the economy

• It could turn the pandemic into an endemic

• It will lead to a new pandemic

What is the expected timeline for the peak of the Omicron wave in the UK?

• Mid-March to April

• Early January to February

• Late February to March

• Late December to early January