HSBC’s King Says Investors Buying Bonds as ‘Catastrophe Insurance’

The video discusses current trends in the bond market, highlighting negative yields and low growth forecasts. It cautions against directly linking real yields to growth rates due to a historically weak relationship. The video also explores the idea of using bonds as a form of catastrophe insurance, especially in light of potential economic collapses due to events like COVID-19 or financial crises.

What does JP Morgan imply about growth over the next year?

Why should one be careful about linking real yields to the growth rate?

What reasons might investors have for buying bonds during uncertain times?

How did the pandemic influence investor behavior regarding bonds?

What is the significance of keeping some insurance in the form of bonds?