Bank of Singapore's Aita on Fed Rate Hikes, Ukraine

The video discusses the impact of Ukraine risk on the bond market, expected rate hikes, and market positioning strategies. It covers the potential for five or more rate hikes in 2022, the flattening of the yield curve, and the influence of quantitative easing reduction. The discussion shifts to China's economic environment, focusing on easing policies and investment opportunities in equities. The video concludes with an analysis of the US credit market, emphasizing credit risk over duration risk due to rising rates and a strong economy.

What is one of the main factors holding back the bond market from rising significantly?

• High inflation rates

• Low unemployment rates

• Ukraine tensions

• Strong US dollar

How many rate hikes are expected in 2022 according to the discussion?

• None

• Five or more

• Four

• Three

What strategic move was made in response to the expected rate hikes?

• Overweight in US equities

• Neutral on equities and overweight in Asia

• Underweight in tech stocks

• Increase in bond investments

Which sector in China is considered promising due to easing policies?

• Agriculture

• Telecommunications

• Clean energy and electric vehicles

• Real estate

What is the preferred investment strategy in China amidst easing policies?

• Commodities

• Equities

• Sovereign bonds

• High yield bonds

In the US, what type of risk is preferred over duration risk?

• Inflation risk

• Political risk

• Currency risk

• Credit risk

Why is credit risk preferred in the US despite rising rates?

• Weak US economy

• Decreasing inflation rates

• Strong and growing US economy

• High likelihood of defaults