Rick Rieder: Credit Only Game in Town for Issuance

The video discusses the current state of the default cycle, highlighting the increase in leverage and its implications on debt service due to low interest rates. It examines the role of central banks in maintaining low rates, especially in Japan and Europe, to manage growing government and corporate leverage. The video also explores investment opportunities in securitized markets, focusing on short-term instruments and emerging markets. Finally, it analyzes trends in high yield markets, emphasizing the preference for higher quality investments over riskier Triple C-rated companies.

What is one reason central banks in Japan and Europe need to keep rates low?

• To manage increasing government and corporate leverage

• To encourage consumer spending

• To control inflation

• To boost exports

What type of securities are affected by the Libor rate spike?

• Fixed rate bonds

• Floating rate securities

• Equity stocks

• Government bonds

Which part of the yield curve is preferred for investment according to the discussion?

• Long-term bonds

• Short-term high cash flowing assets

• Mid-term corporate bonds

• Government securities

What is the trend observed in Triple C rated investments?

• They have been avoided by investors

• They have remained stable

• They have performed exceptionally well

• They have underperformed

Which credit ratings are preferred in high yield investments?

• Triple C and Double C

• Double B and Single B

• Triple A and Double A

• Single A and Triple B