Aviva Investors: High Yield Is Starting to Look More Interesting

The video discusses the state of credit markets during the crisis, highlighting the role of the Federal Reserve and government interventions in maintaining market stability. It explores the impact of these actions on corporate and government debt levels and the implications for economic recovery. The video also examines investment opportunities in the high yield market, emphasizing the need for careful analysis due to sector-specific impacts of the crisis.

What role did the Federal Reserve play in the credit markets during the coronavirus crisis?

• They reduced the issuance of government bonds.

• They aggressively intervened to keep the credit markets open.

• They increased interest rates to stabilize the economy.

• They closed the credit markets to prevent further economic damage.

What is the main driver behind the recent economic growth according to the video?

• Rise in unemployment rates

• Reduction in corporate taxes

• Increase in credit impulse

• Decrease in government spending

How have governments supported the economy during the crisis?

• By closing down financial institutions

• By reducing the money supply

• By directly injecting cash into households and guaranteeing loans

• By increasing taxes on corporations

Why is the high yield market becoming more interesting to investors?

• Due to the decrease in government intervention

• Because it is unaffected by the coronavirus

• Due to the stretched valuations between high yield and investment grade bonds

• Because it has lower risk compared to investment grade bonds

What should investors consider when looking at the high yield market?

• Evaluating bonds on a bond-by-bond basis

• The bond ratings by credit agencies

• The historical performance of the stock market

• The overall market trend