Arqaam Capital's Rizk Says Fed's Move Caused Panic in Markets

The transcript discusses the current market volatility, particularly the impact of oil price fluctuations and the role of value at risk models. It examines the implications for sovereign risk and bond issuance, with historical comparisons to 1991. Recommendations for portfolio adjustments are provided, focusing on bond exposure and the potential for further Fed rate cuts. The discussion also covers potential credit events in the GCC region and Lebanon's political and economic crisis, highlighting the need for external funding and the role of the IMF.

What is one of the main factors contributing to the current market volatility?

• Increase in crude oil prices

• Stability in global markets

• High demand for crude oil

• Value at risk models causing liquidation

Which countries are considered stronger in sustaining low oil prices?

• Qatar and Oman

• Lebanon and Kuwait

• Oman and Bahrain

• Saudi Arabia and UAE

What adjustment is recommended for bond portfolios in light of the current market conditions?

• Avoid any changes in bond portfolios

• Shift from IG to high yield positions

• Increase exposure to short-term bonds

• Shift from high yield to IG positions

What is the potential impact of the Federal Reserve's actions on the market?

• Decrease in market volatility

• Stabilization of oil prices

• Increase in market volatility

• Immediate economic recovery

What is a potential risk for the GCC region mentioned in the transcript?

• Decrease in foreign investments

• Increase in oil production

• Political stability

• Corporate credit event

What is the main challenge Lebanon is facing according to the transcript?

• Economic growth

• High oil prices

• Political unity

• Debt repayment and default risk

What is the suggested solution for Lebanon's financial crisis?

• Increase oil exports

• Implement austerity measures

• Negotiate with creditors

• Seek external funding from the IMF