Is the U.S. the Best Place to Hunt for Yield?

The video discusses the impact of the Bank of Japan's negative interest rates and quantitative easing on Japanese investment trends, particularly the increased capital outflows to the US. It highlights the attractiveness of US high yield and investment grade corporates compared to Japanese government bonds. The challenges faced by the Bank of Japan in managing these outflows and potential policy responses are explored. Additionally, the video examines the US credit cycle, rising default rates, and the implications for investors.

What factors have contributed to the increase in Japanese investors purchasing US assets?

How has the Bank of Japan's monetary policy influenced capital outflows to the US?

What does the recent surge in Japanese purchases of foreign sovereign debt indicate about their investment strategy?

In what ways might the increase in defaults in the US impact Japanese investors' decisions?

What potential actions could the Bank of Japan take in response to the capital outflows?