Pound Hits Three-Decade Low as Brexit Angst Builds

The video discusses the decline of Sterling and its impact on market positioning, highlighting concerns over a hard Brexit and its effects on investors. It examines the influence of these factors on bond markets, particularly corporate bonds, and the role of Deutsche Bank's situation. The video also analyzes market volume trends and the demand for liquidity, before concluding with a discussion on how Sterling's weakness affects sovereign rates and inflation expectations, and the Bank of England's likely response.

What is the primary concern for investors regarding Sterling's performance?

• A potential interest rate hike

• A crowded short position

• A strong economic recovery

• A decrease in inflation

How has the Sterling corporate bond market performed compared to the Euro corporate bond market?

• It has shown similar performance

• It has outperformed significantly

• It has not been affected

• It has underperformed

What factor is contributing to the widening of corporate Sterling spreads?

• Rising interest rates

• Increased demand for Sterling bonds

• Concerns over a hard Brexit

• Improved economic data

What is the Bank of England's likely stance on inflation driven by a weaker currency?

• They will likely ignore it

• They will lower interest rates

• They will raise interest rates

• They will implement quantitative easing

What type of inflation does the Bank of England prefer?

• Cost-push inflation

• Supply-driven inflation

• Demand-driven inflation

• Currency-driven inflation