Goldman's Lynam Sees 'Stock Picking' in Bond Market

The video discusses the bond market trends in 2022, highlighting the return of dispersion and the importance of credit selection. It explores the resilience of the credit market against recession fears and the role of supply and demand dynamics. The impact of the bear market on bond prices and outflows is analyzed, with a focus on investment grade and high yield markets. The video concludes with insights into fund flows and their influence on market performance.

What is a key theme for 2022 in the bond market?

• Decrease in interest rates

• Return of dispersion

• Increase in inflation

• Growth in technology sector

How does the credit market compare to the equity market according to the discussion?

• More prone to recession

• Less resilient

• More volatile

• Considered ahead or smarter

What is expected to happen to the IG market by the end of 2022?

• Move from 125 to over 150 basis points

• Remain stable at 125 basis points

• Increase to over 200 basis points

• Decrease to below 100 basis points

What has been a strong anchor for technicals in the high yield market?

• Decrease in supply

• Low gross issuance

• Increase in demand

• High gross issuance

What is the record decline mentioned in the bond market?

• 12% price down in investment grade

• 11% price down in investment grade

• 8% price down in investment grade

• 6% price down in investment grade

How do IG fund flows behave in bear market rate regimes?

• Chase rates

• Do not chase rates

• Increase significantly

• Decrease significantly

What is the impact of fund flows on market performance?

• Respond to risk factors

• Have no impact

• Cause significant underperformance

• Directly drive performance