Credit Market Weakness: Are We Ignoring the Signs?

Credit Market Weakness: Are We Ignoring the Signs?

Assessment

Interactive Video

Business

University

Hard

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FREE Resource

The video discusses recent trends in bond markets, highlighting Japan's potential fiscal stimulus and its impact on sovereign bonds. It examines corporate bond saturation, with a focus on Microsoft's recent $20 billion bond issuance. The analysis includes Microsoft's bond yield curve and market demand. The video also explores the potential for global fiscal stimulus and its effects on yield curves. Finally, it reviews credit market trends and their implications for equity markets, noting early signs of weakness in credit spreads.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason for the rising yields in Japan?

Microsoft's bond issuance

Decline in global oil prices

Japan's plan to issue 40-year debt

Increased corporate bond issuance

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the approximate value of bonds Microsoft sold recently?

$25 billion

$10 billion

$15 billion

$20 billion

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a lack of follow-through in bond trading indicate?

Market saturation

Increased fiscal stimulus

Rising oil prices

High demand for new issues

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which country is likely to engage in fiscal stimulus by issuing long-term debt?

Australia

United States

Japan

Germany

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a sign of early weakness in the credit market?

Widening credit spreads

Decreasing investment grade credit spreads

Increasing high yield space

Rising energy sector prices