Global Bond Issuance Hits Record of Nearly $600 Billion

The video discusses the changing dynamics in the bond market, highlighting the strong demand for bonds due to attractive yields. It covers regional issuance trends, particularly in Europe, Asia, and emerging markets, and notes the lagging performance of high yield and Japanese corporates. The video also addresses risks associated with default rates and the potential impact of economic downturns on the bond market.

What is one reason investors are eager to buy bonds currently?

• Investors are expecting central bank rate hikes.

• Yields are attractive compared to the past low yield era.

• Bonds are offering historically low yields.

• Bonds are considered a risky investment.

Which region has seen a significant amount of bond issuance due to a reopening narrative?

• South America

• Africa

• Asia

• North America

Which country recently issued the largest emerging market sovereign debt deal in almost three years?

• Turkey

• Mexico

• Hungary

• Saudi Arabia

Why are high yield corporates not issuing as much debt currently?

• They are waiting for potentially lower yields later.

• They are focusing on equity financing.

• They have no need for additional capital.

• They are facing high default rates.

What is the current default rate compared to the normal rate, according to Howard Mark?

• Current rate is 4%, normal is 6%

• Current rate is 4%, normal is 2%

• Current rate is 2%, normal is 4%

• Current rate is 6%, normal is 4%