Junk Bond Sales Accelerate on Low Yields

Junk Bond Sales Accelerate on Low Yields

Assessment

Interactive Video

Business

University

Hard

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The video discusses the recent trends in the US high yield bond market, highlighting a significant drop in yields to their lowest levels in over a year. It examines the Bloomberg Barclays index and notes the return of junk-rated issuers to the market. The video also details current bond offerings, including those from Melco Resorts and Gogo Natural Resources Partners, totaling around $2 billion. It compares current issuance levels to previous years, noting they are below the highs of 2015-2017. The video concludes by questioning whether the current market acceleration will continue or if it is a temporary boom following a rally.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent event is highlighted in the Bloomberg Barclays index regarding US high yield bonds?

A rise in yields to the highest levels in a year

A plunge in yields to the lowest levels in more than a year

A slight increase in yields over the past month

A steady yield with no significant changes

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which companies are mentioned as issuing junk bonds in the current market?

Google and Facebook

Tesla and Amazon

Melco Resorts and Gogo Natural Resources Partners

Apple and Microsoft

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Approximately how much in junk bonds is set to price today according to the transcript?

$500 million

$2 billion

$1 billion

$3 billion

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the current US high yield bond issuance compare to previous years?

It is at an all-time high

It matches the highs of 2016 and 2017

It is slightly ahead of last year but below the highs of 2015-2017

It is significantly lower than last year

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the key question regarding the future of US high yield bond markets?

Is there a risk of a market crash?

Will new companies enter the market?

Is this a temporary boom or a sustained acceleration?

Will the yields continue to rise?