Low Rates Create Havoc for Assessing Risk: UBS's Donovan

The video discusses the complexities of pricing risk in financial markets, highlighting the impact of negative rates and financial repression on market distortions. It explores how government bonds are used to reduce debt, effectively taxing savers, and the shift from global to local market investments. The bond market's low information content in a low inflation environment is examined, emphasizing the need for broader indicators. The video concludes with insights into the equity market's limited information content, particularly in relation to US GDP.

What does the speaker suggest about the future of inflation and its impact on the bond market?

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Where does the speaker believe the information content lies if not in the bond market?

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