Supply Follows Demand in High-Yield Bond Market

The video discusses the current trends in the high yield bond market, highlighting a rise in bond sales to the highest level in three years, despite being below 2014-2015 levels. It notes that June 2019 was particularly busy, driven by low borrowing costs for companies. From an investor's perspective, the high yield bond market has seen the best returns since 2009, with both high yield and investment grade bonds showing significant gains. The resurgence in this asset class is notable, though some investors remain cautious.

What trend is being broken by the recent high yield bond sales?

• Stable sales trend

• Declining sales trend

• Increasing sales trend

• Volatile sales trend

Why has June 2019 been significant in the high yield bond market?

• It had the lowest sales in three years

• It was the busiest month since January

• It saw the highest borrowing costs

• It marked the start of a new trend

What is the current state of borrowing costs for high yield companies?

• Unchanged since 2018

• Fluctuating since 2018

• Lowest since early 2018

• Highest since 2018

What has been the return rate for the high yield bond market in the best year since 2009?

• 12%

• 10%

• 7%

• 5%

How have investment-grade corporate bonds performed compared to high yield bonds?

• They have underperformed significantly

• They have performed similarly with nearly 10% returns

• They have shown no significant change

• They have outperformed with over 15% returns