Record European Bond Sales, U.S. High-Yield Comeback Highlight the Start of 2019

The video discusses the global economic outlook, focusing on the demand for yield amidst low global rates and the ECB's inability to move away from negative rates. It examines the European credit market, highlighting the behavior of periphery bonds and the impact of ECB policies. The US market sentiment is analyzed, noting the shift from fear of recession to improved sentiment. Trends in the high yield and loan markets are explored, with a focus on issuer demand and market shifts. Finally, investment strategies for managing risk and returns are discussed, emphasizing the importance of high-quality carry and tactical plays.

What factors are contributing to the demand for positive yield in the current economic climate?

How does the behavior of the periphery in financial markets compare to that of sovereigns?

What is the significance of the ECB's inability to provide additional stimulus?

In what ways have credit markets reacted to fears of a recession?

How do the current debt levels and earnings impact the outlook for the market?

What trends are observed in the high yield market compared to bank loans?

What strategies are suggested for managing cash allocations in the current market?