Wells Fargo's Cisar: 'Positive View' on Corporate Credit Long Term

The video discusses the global economic outlook, focusing on yield trends and the impact of central banks. It explores US economic dynamics, highlighting the consumer's role and potential risks. The impact of quantitative easing (QE) and tightening (QT) on the yield curve is analyzed, considering trade and liquidity challenges. The discussion shifts to negative yields and their influence on corporate credit markets. Finally, strategies for defensive investments and yield curve positioning are outlined, emphasizing a cautious approach amid economic uncertainties.

What are some factors that could influence yields in the near term?

• Increased consumer spending

• Technical factors and foreign interest

• Rising unemployment rates

• Decreased government spending

How has quantitative easing (QE) affected the yield curve?

• It has had no impact

• It has increased the curve's volatility

• It has normalized the curve

• It has pegged the 10-year part of the curve to low levels

What is the current value of negative yielding debt globally?

• $15 trillion

• $8 trillion

• $5 trillion

• $11 trillion

What investment strategy is recommended for the summer months?

• Aggressive high-yield investments

• Defensive strategy focusing on corporate credit

• Investing heavily in foreign markets

• Avoiding all investments

Which part of the yield curve is preferred for investment-grade corporate credit?

• Long end

• Entire curve

• Middle section

• Front end