Credit Risk Should Be First Line of Defense: BNY Mellon’s Yu

The video discusses the importance of identifying financial risks, particularly in credit spreads and eurozone sovereign spreads. It highlights the role of the ECB's MPP program in targeting these spreads and recalls Madame Lagarde's policy U-turn. The video also addresses market vulnerabilities, emphasizing areas where markets might attack if conditions are too tight. It concludes by discussing the strong performance of credit over the last decade and the need for vigilance in maintaining market control.

What is the primary focus when identifying risks in financial conditions according to the speaker?

• Interest rates

• Inflation rates

• Credit and spreads

• Stock market trends

What program does the ECB use to target eurozone spreads?

• Quantitative Easing

• Monetary Policy Program

• Market Purchase Program

• Fiscal Stability Program

What past action by Madame Lagarde is referenced in relation to the ECB's focus?

• Interest rate hike

• Quantitative easing

• Introduction of new currency

• U-turn on policy

Which areas are considered vulnerable if there is a loss of control in the market?

• High-yield corporate bonds

• Real estate market

• Commodities market

• Technology stocks

What has been the trend in credit performance over the last decade?

• Decline

• Stagnation

• Good run

• Volatility