China Government Bonds Becoming a Safe Heaven Asset, UBS AM's Briscoe Says

The video discusses the current challenges in finding yields, with Europe and Japan offering minimal returns. It highlights the role of Chinese bonds as safe haven assets, similar to US Treasurys, during market sell-offs. The discussion also covers the economic recovery, noting the shift in stimulus towards private enterprises and the potential for an L-shaped recovery. Finally, it examines China's continued dominance in bond issuance and the attractiveness of Asian high yield markets.

What is the current challenge faced by investors in Europe and Japan regarding yields?

• High yields leading to inflation

• Stable yields with no growth potential

• Low or zero yields making it hard to find income

• Excessive yields causing market instability

How do Chinese bonds compare to traditional safe haven assets during a financial crisis?

• They are less reliable than US Treasurys

• They act similarly to safe haven assets like US Treasurys

• They are more volatile than gold

• They are not considered safe haven assets

What is the main difference in the recent stimulus efforts in China compared to previous episodes?

• Increased government spending on public services

• Stimulus directed through private owned enterprises via banks

• Direct investment in foreign markets

• Focus on infrastructure and housing markets

What is expected to happen with China's bond issuance this year?

• Decrease due to economic slowdown

• Shift focus to non-Chinese countries

• Remain dominant with continued issuance

• Stop completely due to market saturation

Why are Asian high yield spreads considered attractive in the current market?

• They are less risky than other global markets

• They provide higher yields and wider credit spreads than US markets

• They have narrower credit spreads than US markets

• They offer lower returns than US markets