See Good Value in Pound Longer-Term, Says Coutts & Co.’s CIO

The video discusses the UK yield curve inversion, its implications, and how it differs from the US. It explores the impact of market demand, particularly from pension funds, on long-term debt reliability. The discussion extends to investment strategies in the current market, focusing on gilts and capital gains. The video also covers the FX market, analyzing Sterling's valuation and trends amidst Brexit uncertainties.

What is one reason the UK yield curve is considered less reliable than the US yield curve?

• The UK yield curve is influenced by the US market.

• The UK market has unique characteristics, such as pension fund demand for long-term debt.

• The UK yield curve has always been upward sloping.

• The UK market has a higher demand for short-term debt.

What does the current UK yield curve inversion suggest about interest rates?

• Interest rates will remain stable.

• Interest rates are unpredictable.

• Interest rates are likely to fall.

• Interest rates are likely to rise.

How do macro funds view the current UK gilt market?

• They see no potential for capital gains.

• They focus on long-term income streams.

• They are interested in short-term trading opportunities.

• They avoid the market due to high risks.

What is the current trend for Sterling according to the discussion?

• Sterling is expected to weaken in the short term.

• Sterling is expected to strengthen in the short term.

• Sterling will remain stable.

• Sterling is not affected by political events.

What is the long-term outlook for Sterling despite current uncertainties?

• Sterling is expected to lose value permanently.

• Sterling is seen as having good value in the long term.

• Sterling will not recover from current lows.

• Sterling's value is solely dependent on Brexit outcomes.