Record European Bond Sales, U.S. High-Yield Comeback Highlight the Start of 2019

The video discusses the global economic outlook, focusing on the demand for yield amidst low global rates and the ECB's inability to move away from negative rates. It examines the European credit market, highlighting the behavior of periphery bonds and the impact of ECB policies. The US market sentiment is analyzed, noting the shift from fear of recession to improved sentiment. Trends in the high yield and loan markets are explored, with a focus on issuer demand and market shifts. Finally, investment strategies for managing risk and returns are discussed, emphasizing the importance of high-quality carry and tactical plays.

What is the primary reason for the demand for positive yields in the current global economic climate?

• Low global interest rates

• High global interest rates

• Rising global interest rates

• Stable global interest rates

How are peripheral European countries' bonds currently trading?

• Like commodities

• Like credit

• Like equity

• Like sovereign bonds

What is the ECB's current stance on providing additional stimulus?

• Increasing stimulus

• Decreasing stimulus

• No additional stimulus

• Maintaining current levels

What was the primary concern in the US credit markets in December?

• Decreasing corporate earnings

• A potential Fed mistake leading to a recession

• Rising interest rates

• Increasing inflation

What shift is expected in the high yield market in 2019?

• Increased demand for floating rates

• Decreased demand for high yield

• A balance between high yield and loans

• A shift towards equity markets

What is the suggested strategy for investors in the current market environment?

• Avoid all market risks

• Invest heavily in equities

• Focus on high quality carry

• Increase cash holdings

What is the expected performance of the high yield market for the rest of the year?

• Outperform other markets

• Decline significantly

• Replicate January's gains

• Remain stable