HSBC���s King Says Investors Buying Bonds as ���Catastrophe Insurance���

The video discusses current trends in the bond market, highlighting negative yields and forecasts by JP Morgan. It cautions against linking real yields to growth rates due to a historically weak relationship. The video also explores the idea of using bonds as catastrophe insurance, especially in light of economic uncertainties like COVID-19 and potential financial crises.

What is the current state of bond yields according to the transcript?

• Negative 37 basis points

• Negative 1%

• Positive 1%

• Positive 37 basis points

What growth rate does JP Morgan predict for the next year?

• 1.5%

• 0.5%

• 2.5%

• 3.5%

Why should one be cautious about linking real yields to growth rates?

• The relationship has been poor historically.

• The relationship has been strong historically.

• Growth rates are independent of real yields.

• Real yields always predict growth accurately.

What is one reason investors might buy bonds according to the transcript?

• To diversify into real estate

• To increase short-term profits

• As a form of catastrophe insurance

• To avoid paying taxes

What past events have influenced the rationale for buying bonds as insurance?

• The housing market boom

• The rise of cryptocurrency

• The global financial crisis and the pandemic

• The dot-com bubble