MIT's Pozen Warns Investors on Junk Bond Rate Risks

MIT's Pozen Warns Investors on Junk Bond Rate Risks

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the impact of interest rates on US investors, highlighting the risks associated with investments in junk bonds and emerging market bonds. It emphasizes the influx of retail and institutional money into these high-risk areas due to low yields on US Treasury bonds. The discussion also touches on the Federal Reserve's cautious approach to raising interest rates, considering factors like US employment and inflation, and the potential consequences for investors if risks materialize.

Read more

2 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the yield on US Treasury bonds compare to the yields on junk bonds?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors might Janet Yellen be considering regarding interest rates, according to the discussion?

Evaluate responses using AI:

OFF