Chinese Bonds Will Continue to Be Well Anchored, Says Pinebridge Investments’s Slim

The video discusses the attractiveness of Chinese bonds for foreign investors, considering their inclusion in global indices and the impact of the remnant and hedging. It also explores the trend of negative yielding bonds and the need for fiscal action, particularly in Europe. Additionally, it highlights issues in the US money market and the implications of ongoing liquidity injections, which resemble a stealthy quantitative easing.

What makes Chinese bonds attractive to foreign investors?

• Lack of competition

• Strong currency performance

• Inclusion in global indices

• High absolute yields

What is the expected trend for the renminbi according to the discussion?

• Weakening trajectory

• Remaining stable

• Fluctuating unpredictably

• Strengthening significantly

What is the long-term impact of negative yielding bonds?

• Encourages fiscal action

• Decreases foreign investment

• Strengthens currency

• Increases inflation

What is the current trend in European monetary policy?

• Tightening

• Restrictive

• Accommodative

• Neutral

What is the implication of liquidity injections in the US money market?

• Increased interest rates

• Decreased market stability

• Stealthy quantitative easing

• Strengthened dollar