Closer to the End of Fed Hikes: Principal AM's Wan

The video discusses the current state of the bond market, focusing on the disconnect between market expectations and the Federal Reserve's policy on rate hikes and cuts. It explores the potential for yield curve steepening as the rate hiking cycle nears its end. Additionally, the video examines the impact of recent events involving Credit Suisse and AT1 bonds, highlighting differences in market reactions between Asia and Europe.

What is the bond market's current belief regarding the tightening cycle?

• The tightening cycle is irrelevant to market pricing.

• The tightening cycle will continue for another year.

• The tightening cycle is over.

• The tightening cycle is just beginning.

What is the market's expectation regarding rate cuts by the second half of the year?

• Rate cuts are expected immediately.

• Rate cuts are not expected at all.

• Rate cuts are expected next year.

• Rate cuts are expected by the second half of the year.

How does the end of the rate hiking cycle affect the yield curve?

• The yield curve inverts.

• The yield curve flattens.

• The yield curve steepens.

• The yield curve remains unchanged.

What challenge is mentioned regarding trading in front-end rates?

• Front-end rates are too predictable.

• Front-end rates are too high.

• Front-end rates are too volatile.

• Front-end rates are too stable.

What opportunity is identified in the Asian 81 bond market?

• The market is expected to decline.

• The market is fairly interesting for investment.

• The market offers no opportunities.

• The market is too risky to invest.