IG Credit Set Up for Six Months of Good Total Returns, Invesco's Brill Says

IG Credit Set Up for Six Months of Good Total Returns, Invesco's Brill Says

Assessment

Interactive Video

Business

University

Hard

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The video discusses the current state of investment grade credit, highlighting a 3.5% year-to-date return driven by attractive yields in the low fives. Despite this, corporations are hesitant to issue new debt due to high borrowing costs, with banks being the primary borrowers. The video also notes a shift from cash to bonds as investors seek better returns.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the trend in investment grade credit returns year to date?

They have decreased by 3.5%

They have remained stable

They have increased by 3.5%

They have increased by 5%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason for the inflows into investment grade credit?

Attractive yields

Increased corporate issuance

Low interest rates

High spreads

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are corporations hesitant to issue new debt?

Low demand for bonds

High borrowing costs

Lack of investment opportunities

Regulatory restrictions

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sector has shown an increase in borrowing despite high costs?

Large banks

Regional banks

Retail companies

Technology companies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the stance of regional banks towards borrowing in the current environment?

They are actively borrowing

They are cautious and not ready to issue

They are reducing their debt

They are increasing their leverage