Finding Opportunities in the Bond Markets

David Bailin, Global Head of Managed Investments at Citi Private Bank, discusses the current state of sovereign debt markets, highlighting the unattractive yields in Japan and Germany. He emphasizes the importance of asset allocation and risk compensation, suggesting investors seek positive yields in the US and Latin America. Bailin also explores corporate debt opportunities, noting the potential impact of the ECB's corporate debt purchases. Overall, the focus is on finding investment opportunities with favorable yields and credit quality.

Why does David Bailin consider the yields in Japan and Germany's sovereign bond markets unacceptable?

• Because they are not backed by the government.

• Because they are too volatile.

• Because they have negative or very low yields.

• Because they offer high returns.

What is the main reason investors are willing to take currency risks according to David Bailin?

• To invest in emerging markets.

• To diversify their portfolio.

• To avoid market volatility.

• To achieve positive yields.

Which regions have seen an increased investment focus according to the asset allocation strategy discussed?

• Europe and Asia

• Canada and Mexico

• United States and Australia

• Africa and Middle East

What is the expected impact of the ECB's monetary policy on corporate debt markets?

• It will decrease interest rates.

• It will lead to a market crash.

• It will have no impact.

• It will affect the relative rate and credit quality.

Despite the ECB's actions, what is the strategy regarding corporate paper?

• To avoid all forms of debt.

• To sell all corporate paper.

• To maintain overweights in corporate paper.

• To invest only in sovereign bonds.