Investment Opportunities in a Low-Yield Environment

Investment Opportunities in a Low-Yield Environment

Assessment

Interactive Video

Business

University

Hard

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The video discusses the influence of U.S. investment grade debt on global yield income, highlighting the risks of its popularity. It examines the potential impact of rising interest rates on credit markets, particularly in high yield sectors. The focus shifts to energy high yield debt, driven by changes in oil prices, and the role of financial engineering in corporate investments. The discussion concludes with the potential for government-led infrastructure spending.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a major risk associated with the popularity of U.S. investment grade debt?

Higher inflation rates

Crowded trade leading to market pressure

Decreased foreign investment

Increased default risk

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might rising interest rates affect the credit market?

They will have no effect

They will decrease the supply of credit

They will increase the demand for credit

They will put pressure on higher quality credit spaces

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has driven the recent returns in the high yield market?

Increased government bonds

Decreased corporate taxes

Rising interest rates

Energy and basic materials sector

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a consequence of low global interest rates on corporations?

Decreased stock buybacks

Higher employment rates

Focus on financial engineering

Increased long-term investments

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential solution to encourage long-term investments according to the transcript?

Increasing stock buybacks

Reducing corporate taxes

Raising interest rates

Government-led infrastructure spending