Bond Investing Strategies With Old Mutual's Mark Nash

The video discusses the current trends in the bond market, focusing on Europe and the US. It highlights the European Central Bank's (ECB) strategies to support economic recovery, including fixing rates and steepening the yield curve. The discussion covers the impact of the reflation trade and political risks on bonds, particularly in peripheral markets. It also examines the role of foreign investors in US Treasury yields and the convergence of global yields. Finally, the video explores the implications of rising yields on corporate bonds and market dynamics.

What is one of the main actions taken by the European Central Bank to support the recovery?

• Strengthening the euro

• Increasing interest rates

• Fixing rates to keep financial conditions easy

• Reducing fiscal stimulus

Which countries are mentioned as having political risks affecting their bond markets?

• Spain and Portugal

• Italy and France

• Greece and Ireland

• Germany and Netherlands

Why have U.S. Treasury yields not risen higher according to the discussion?

• Increased government spending

• Foreign investors buying Treasurys

• High domestic demand

• Strong U.S. economic growth

What is the expected trend for German and Eurozone yields in relation to U.S. Treasury yields?

• They will remain unchanged

• They will converge closer to U.S. yields

• They will diverge significantly

• They will decrease sharply

What is the natural consequence of rising Treasury yields on corporate bonds?

• Corporate bond yields decrease

• Corporate bonds outperform government bonds

• Corporate bond spreads widen

• Corporate bonds become more attractive

What has been the trend in mutual funds over the last six years according to the discussion?

• They have decreased slightly

• They have doubled in size

• They have halved in size

• They have remained stable

What is the potential impact of rising cash rates from the Fed on asset markets?

• Increased investment in risky assets

• Stability in mutual funds

• Decreased government bond yields

• Money moving out of carry trades