How the Fed, Negative Rates Impact the Municipal Bond Market

How the Fed, Negative Rates Impact the Municipal Bond Market

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the Fed's limited influence on interest rates and the impact of negative rates overseas on US Treasurys and municipal bonds. It highlights the supply and demand dynamics in the bond market, noting decreased supply and increased demand. The video also explores investment strategies, comparing high yield and investment grade bonds, and the role of insurance in enhancing portfolio value.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the catalysts mentioned for keeping interest rates low in 2020?

Federal Reserve's influence

Increased government spending

Rising inflation

Negative rates overseas

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the municipal market compare to negative debt overseas?

It offers lower yields

It is a less attractive option

It is unaffected by overseas rates

It offers higher yields

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What trend is observed in the bond market supply for the year discussed?

Unpredictable supply

Stable supply

Increase in supply

Decrease in supply

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a challenge faced by portfolio managers due to market dynamics?

Excessive bond supply

High interest rates

Lack of investor interest

Chasing yields lower

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a benefit of investing in Triple B credits with insurance?

Increased volatility

Enhanced portfolio value

Higher risk

Lower yield