BlackRock's Rieder: This Is the Year of Carry

The video discusses investment opportunities in fixed income, focusing on high yield and emerging markets. It highlights the impact of the ECB's corporate debt purchases and the challenges of negative interest rates. The differences between US and European lending markets are explored, emphasizing the role of banks and capital markets.

Which market is highlighted as bifurcated into 'haves' and 'have nots'?

• Commercial mortgages

• Securitized markets

• High yield market

• Emerging markets

What is a potential consequence of the ECB buying corporate debt?

• Decreased investment opportunities

• Higher interest rates

• Increased market stability

• Misallocation of capital

What is a challenge mentioned in executing central bank interventions in credit markets?

• Difficulty in expanding the universe of eligible assets

• High transaction costs

• Regulatory hurdles

• Lack of investor interest

How does the lending mechanism in Europe primarily differ from that in the US?

• US has a smaller capital market

• Europe relies more on corporate debt markets

• US relies more on bank-driven lending

• Europe relies more on bank-driven lending

Which entities are suggested to be natural buyers of long-term assets?

• Hedge funds

• Retail investors

• Insurance companies and pension funds

• Central banks