New World With Fed and Its Confusing: David Zervos

The video discusses the Federal Reserve's role in economic recovery, highlighting the confusion in market reactions to policy changes. It explores the impact of high yield market freezes, shifts in trading roles, and the influence of currency markets on rate expectations. The speaker emphasizes the importance of embracing market volatility and contrasts the performance of macro and distressed markets.

What is the main challenge in predicting the Federal Reserve's actions when the economy is improving?

• Lack of historical data

• Uncertainty in rate projections

• High inflation rates

• Global economic instability

What is causing the high yield market to experience volatility?

• Increased government regulations

• Oil prices and lack of liquidity

• Rising interest rates

• High inflation rates

How did quantitative easing (QE) affect traders in different markets?

• It reduced their trading opportunities

• It forced them to switch markets

• It increased their profits

• It stabilized the markets

What is the main concern regarding the removal of accommodation by the Fed?

• The potential for increased unemployment

• The uncertainty of whether it will be through a strong dollar or rates

• The effect on the stock market

• The impact on inflation

What was the bond market's reaction to Janet Yellen's press conference?

• A drop in the 10-year bond

• An increase in bond prices

• A decrease in bond prices

• A rally in the 30-year bond

How did macro funds perform in September compared to distressed funds?

• Both had similar performance

• Both performed poorly

• Macro funds performed well, distressed funds struggled

• Distressed funds outperformed macro funds

What is the significance of the '2 and 20' fee structure mentioned in the context of fund management?

• It is a standard fee for all types of funds

• It is only applicable to hedge funds

• It is criticized during easy markets but valued during volatile times

• It is a new fee structure introduced recently