Aberdeen's Hickmore: We're Not in a Bond Bubble

The transcript discusses concerns about a potential bubble in the bond market, with a focus on growth and inflation. It highlights the impact of foreign buyers on low yields, particularly in the UK, where the Bank of England's actions are influencing the market. The discussion also covers the dynamics of the Treasury and UK markets, challenges in bond selling, and market scarcity. Finally, it addresses liquidity issues and the need for bond maturity extensions.

What is one reason for the low returns in the bond market according to the discussion?

• Foreign buyers entering the market

• Rising interest rates

• High inflation rates

• Increased government spending

What challenge is the Bank of England facing with its QE program?

• Finding enough short-term bonds to buy

• Purchasing longer-dated bonds

• Increasing interest rates

• Managing high inflation rates

What is a potential consequence of the Bank of England's difficulty in buying longer-dated bonds?

• Increased inflation in the UK

• Decreased government spending

• Higher interest rates in Europe

• Investors moving to the US market

Why is the 15-year plus bond market considered difficult?

• It is where LDI investors are active

• It is heavily regulated

• It is dominated by short-term investors

• It has high yields

What strategy might be necessary to acquire bonds in the gilt market?

• Increasing interest rates

• Extending maturities

• Reducing inflation

• Increasing government spending