Why BBB Corporate Debt Is Back in Vogue

Why BBB Corporate Debt Is Back in Vogue

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Interactive Video

Business

University

Hard

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The video discusses the performance of Triple B debt, which saw a 5.8% increase in the first quarter, contrasting with the pessimistic sentiment in October and November. The change in sentiment is attributed to the Fed's rate pause and companies focusing on debt reduction. Despite recession signals from the yield curve, credit markets remain strong, with Triple B bonds performing well. The video also highlights the shift in investment strategies towards duration risk, with a significant portion of the market now in Triple B tier, and the interest in longer-dated bonds by insurance companies and pension funds.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the role of duration risk versus credit risk as mentioned in the text.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What trends have been observed in the buying patterns of Triple B tier bonds?

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