Kapstream Capital's Siluk on Bond Markets and Strategies

The video discusses the transition from pandemic-induced to conflict-induced inflation, highlighting the impact on supply chains, energy, and food costs. It explores investment strategies in the context of rising yields, particularly in Australia and New Zealand, emphasizing low exposure to interest rate risk. The shift in bond market preferences from Chinese bonds to developed markets is analyzed, considering the yield differential and liquidity of U.S. Treasuries. Finally, China's economic policies, including rate cuts and fiscal stimulus, are examined in response to their economic downturn and zero-COVID policy.

What is one of the main causes of the transition from pandemic-induced inflation to conflict-induced inflation?

• The war in Ukraine

• Increased consumer spending on services

• Decreased energy costs

• Supply chain improvements

What is the expected trend for growth and inflation over the course of the year?

• Both growth and inflation are expected to increase

• Growth is expected to slow while inflation increases

• Both growth and inflation are expected to slow

• Growth is expected to increase while inflation slows

How should investors manage their exposure to interest rate risk according to the second section?

• Invest heavily in Chinese bonds

• Increase duration

• Maintain low duration

• Ignore central bank policies

What is a key reason for the shift from Chinese bonds to developed markets?

• Stronger Chinese currency

• Higher inflation in China

• Increased yield premium in China

• Compressed yield differential

What economic policy is China expected to continue to support its economy?

• Implementing strict fiscal policies

• Raising interest rates

• Reducing monetary supply

• Cutting rates and fiscal stimulus