Bordier Singapore CIO Says Loans Not as Liquid as Bond Markets

The video discusses the current market turmoil and its impact on equity futures, highlighting the potential risks associated with exchange traded loan funds. An interview with Brian, an investment officer, provides insights into the liquidity issues of these funds. The discussion also covers central banks' strategies regarding rate hikes and the potential for inflation, emphasizing the risks of accelerated rate increases.

What is a key concern about exchange-traded loan funds compared to volatility-linked products?

• They are more liquid.

• They are less popular among investors.

• They are much larger in size.

• They offer higher returns.

According to Brian, what is crucial when investing in loans?

• Choosing the right investment vehicle with appropriate liquidity.

• Investing in the largest funds available.

• Avoiding loans altogether.

• Focusing solely on short-term returns.

What does Brian suggest about the potential for future interest rate hikes?

• They will have no impact on inflation.

• They will remain constant.

• They might spur higher inflation.

• They will definitely decrease.

How might interest rate hikes affect the yield curve, according to the discussion?

• They will have no effect on the yield curve.

• They will steepen the yield curve.

• They will flatten the yield curve.

• They will invert the yield curve.

What is a potential risk if interest rates trigger inflation?

• The yield curve will flatten.

• Inflation will have no impact on interest rates.

• Interest rates will decrease.

• Central banks may raise rates even faster.