Are We in a Credit Bubble?

The video discusses the challenges of pricing investment grade yields in Europe, especially with negative yields. It highlights the psychological impact on fund managers and the importance of focusing on spreads rather than yields. The role of central bank policies, such as quantitative easing by the ECB and Bank of England, is examined, along with their effects on market complacency. The video also explores potential risks, including inflation and bond market stability, and the future of these markets.

What is a significant challenge for fund managers in a world of low or negative yields?

• Accepting the psychological aspect of low yields

• Finding high-yield investments

• Focusing solely on yield rather than spread

• Avoiding investments in corporate bonds

How do central banks influence the credit market according to the discussion?

• By selling government bonds

• By buying corporate bonds

• By increasing interest rates

• By reducing inflation

What was a key factor in credit spread direction in January?

• Stock market trends

• Currency exchange rates

• Oil prices

• Interest rates

What is a potential risk if central bank policies succeed in creating inflation?

• Decreased bond yields

• Increased financial stability

• Lower corporate bond prices

• Challenges in trading fixed income

What is Mario Draghi's approach to tackling low inflation in the Eurozone?

• Focusing on government bonds

• Increasing interest rates

• Buying more assets and being creative

• Reducing asset purchases