10-Year Yields to Move Upward Before Year End: Metlife's Matus

The video discusses the challenges of low annuity rates in the UK and globally, emphasizing the need for structural changes to improve yields. It explores the impact of low rates on 401K plans and investment strategies, highlighting the importance of risk management. The debate between holding cash and investing in risky assets is examined, with a critique of global low interest rate policies and their effects on economic growth.

What is the expected movement of 10-year yields according to the speaker?

• They will move up from current levels before year end.

• They will remain stable.

• They will decrease significantly.

• They will fluctuate unpredictably.

What is a key factor in determining the actuarial assumption of a 401K?

• The number of years until retirement.

• The location of the retiree.

• The investment choices made.

• The age of the retiree.

How have firms adapted to the long-standing issue of low interest rates?

• By closing down operations.

• By adapting over time to manage risks.

• By reducing their investment portfolios.

• By increasing their workforce.

What is the speaker's view on the impact of low interest rates on consumer savings?

• Consumers are less likely to save money.

• Consumers are more likely to spend money.

• Consumers save more money as interest rates fall.

• Consumers' saving habits remain unchanged.

What is the consequence of sustained low interest rates according to the speaker?

• They boost economic growth.

• They create zombie economies.

• They lead to higher inflation.

• They increase consumer spending.