Breaking Down the Global Bond Market of 2014

The video reflects on the bond market in 2014, focusing on the Fed's October meeting minutes, which marked the end of the tapering process. It examines three bond market components: investment grade corporate bonds, high yield corporate bonds, and developed sovereign bonds. Despite initial predictions, bond prices rose, and yields fell. The video highlights the performance of these bonds, noting that corporate bonds outperformed sovereign bonds. It concludes with a discussion on changing interest rate expectations and the overall bond market performance, which saw an average gain of 6.4% for the year.

What significant event was discussed in the Federal Reserve's October meeting minutes?

• The beginning of the tapering process

• A fall in bond prices

• A rise in bond yields

• The end of the tapering process

Which bond index reached an all-time high in August 2014?

• Bloomberg Global Municipal Bond Index

• Bloomberg Global Developed Sovereign Bond Markets

• Bloomberg Global High Yield Corporate Bond Index

• Bloomberg Global Investment Grade Corporate Bond Index

How did the Bloomberg Global High Yield Corporate Bond Index perform by July 9th, 2014?

• It reached a record high

• It increased by 2%

• It remained unchanged

• It declined by 2%

What was the performance of the Bloomberg Global Developed Sovereign Bond Markets in 2014?

• Positive 0.1%

• Positive 2%

• Negative 2%

• Negative 0.1%

What was the average gain for bonds of all types in 2014?

• 6.4%

• 8.9%

• 5.4%

• 4.6%