Small Tail Risks Throughout Euro Zone: Pimco's Bosomworth

The video discusses the Bank of England's position post-Brexit, highlighting the economic growth and uncertainties due to Article 50 negotiations. It also examines the political landscape in the Eurozone, focusing on potential tail risks from elections and radical parties. The discussion extends to strategies for pricing political risks, emphasizing the concept of corner solutions and the use of bond futures to mitigate these risks.

What is the Bank of England's current stance on the June 19 short sterling contracts?

• They are neutral on it.

• They are pessimistic about it.

• They are optimistic about it.

• They are planning to sell it.

What is the main concern regarding the political landscape in the Eurozone?

• The rise of radical parties in multiple countries.

• The lack of elections in the coming year.

• The economic growth in the Eurozone.

• The stability of the Euro currency.

How does the speaker suggest dealing with the risk of corner solutions?

• By investing in short-term securities.

• By ignoring the risks altogether.

• By focusing on high-risk investments.

• By having a lot of duration in bond futures.

What is a characteristic of markets when corner solutions occur?

• They become less volatile.

• They move very quickly and far.

• They remain continuous.

• They become more stable.

What is the potential impact of Gert Builders winning in the Netherlands?

• It would strengthen the Euro currency.

• It would have no impact on the markets.

• It would lead to a stable political environment.

• It could introduce significant market risks.