2pm Deep Dive: Bonds and Currencies

The video discusses recent trends in the US high yield debt market, highlighting its current yield compared to emerging markets. It explores the resilience of US credit, previously seen as a safe haven, and the impact of a rallying dollar on emerging markets. The discussion includes the Bloomberg Dollar index reaching a high, which is counterintuitive as a strong dollar typically leads to emerging market sell-offs. The video concludes with a look at potential future trends and divergences from past credit cycles.

What has been the focus of real selling according to the video?

• United States high yield debt

• European high yield debt

• Emerging markets high yield debt

• Asian high yield debt

How did US high yield debt perform during the emerging markets credit sell-off?

• It declined significantly

• It was incredibly resilient

• It matched the sell-off trend

• It was highly volatile

What is the current perception of US credit as a safe haven?

• It is considered riskier than before

• It has always been volatile

• It is no longer seen as a safe haven

• It is still considered a safe haven

What is the usual effect of a stronger dollar on emerging markets?

• Emerging markets remain stable

• Emerging markets tend to rally

• Emerging markets outperform US markets

• Emerging markets sell off

What unusual trend is observed in the current market cycle?

• Emerging markets are not selling off despite a strong dollar

• Emerging markets are selling off

• US markets are underperforming

• European markets are outperforming