Corporate Bonds Being Cut to Junk at Fastest Pace Since 2020

The video discusses the current state of the corporate bond market, highlighting the rapid downgrades to junk status since the pandemic began. It examines the impact of rising borrowing costs on corporations and the potential risks posed by an exhausted carry trade, which could lead to market corrections. The video also analyzes shrinking yields on investment-grade bonds and their implications for funding costs, drawing parallels to past market conditions.

What significant trend is being observed in the corporate bond market as of 2020?

According to Barclays, what is the expected full year volume of downgrades in the corporate bond market?

What are the implications of rising borrowing costs on corporate bonds?

What is the 'exhausted carry trade' and why is it significant in the current market?

How have yields on investment grade bonds changed relative to the federal funds rate?