Abby Joseph Cohen: More Damage Ahead for Credit Markets

Abby Joseph Cohen: More Damage Ahead for Credit Markets

Assessment

Interactive Video

Business

University

Hard

Created by

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The video discusses the challenges faced by the bond market, highlighting historical losses and the role of central banks in maintaining low interest rates. It predicts further damage in credit markets due to illiquid securities but also identifies potential investment opportunities for bond investors, offering yields of 3-4% as some of the best in 20 years.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What unusual trend has been observed in the bond market recently?

Both yields and prices have decreased.

Both yields and prices have increased.

Yields have increased while prices have decreased.

Yields have decreased while prices have increased.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role did central banks play in the bond market's overvaluation?

They restricted bond trading.

They sold large amounts of bonds.

They kept interest rates nominally low.

They increased interest rates significantly.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following was a common characteristic in 2/3 of major economies, excluding the US?

High real yields

Negative real yields

Stable real yields

Fluctuating real yields

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential future concern for the credit markets?

Decreased interest rates

Increased liquidity of securities

Unseen damage due to illiquid securities

Stable market conditions

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What opportunity is available for individual bond investors now?

Achieving a 6% yield

Achieving a 1% yield

Achieving a 5% yield

Achieving a 3 or 4% yield