Credit Investors Show No Sign of Risk Aversion Despite Pimco's Alarm

The video discusses the current market sentiment, highlighting a risk-off feeling in the markets. It examines credit default swaps and the rising implied spread on high yield bonds, noting significant outflows from major high yield bond ETFs. Despite these movements, bond spreads remain subdued, indicating a complacent environment. PIMCO is raising concerns about credit markets, but there is no substantial risk aversion observed.

What is indicated by the rise in credit default swaps linked to high yield bonds?

• A decrease in market risk

• An increase in market risk

• Stability in market conditions

• A decline in investor interest

What was the approximate amount withdrawn from J&K State Street ETF in one day?

• $500 million

• $430 million

• $300 million

• $360 million

How are the recent outflows from high yield bond ETFs characterized?

• Significant but not massive

• Massive and concerning

• Negligible and unimportant

• Moderate and expected

What does the subdued spread between high yield and investment grade bonds suggest?

• A market downturn

• Increased risk aversion

• Investor complacency

• High market volatility

Despite PIMCO's warnings, what is the current sentiment in credit markets?

• A significant market correction

• No substantial risk aversion

• A market panic

• High risk aversion