Bhimalingham on the Credit Market Sell Off

The video discusses the current state of credit markets, focusing on the impact of the ECB's hawkish stance and recent credit sell-offs. Mahesh Billingham, Chief European Credit Strategist at Bloomberg Intelligence, provides insights into the potential for further spread widening and the implications of ECB policies on corporate credit. The discussion also covers stress indicators in credit markets, such as fallen angels and defaults, and concludes with expert insights on the future of credit markets.

What is the current status of the euro high yield and investment grade spreads according to Mahesh Ingram?

• They have increased by 100 and 50 basis points respectively.

• They have remained stable over the past month.

• They have decreased by 70 and 20 basis points respectively.

• They have increased by 70 and 20 basis points respectively.

What is a potential consequence of the ECB hiking rates due to inflation?

• An increase in corporate credit purchases.

• A halt in the standard QE program.

• A decrease in inflation rates.

• An increase in the Fed's corporate credit holdings.

How does the ECB's corporate credit holding compare to the Fed and BYOE?

• The ECB holds significantly more than both.

• The ECB holds significantly less than both.

• The ECB holds slightly more than BYOE but less than the Fed.

• The ECB holds about the same as the Fed.

What are 'fallen angels' in the context of credit markets?

• Companies that have been upgraded from junk to investment grade.

• Companies that have been downgraded from investment grade to junk.

• Companies that have defaulted on their debt.

• Companies that have maintained their investment grade status.

What is Mahesh Ingram's concern if the credit market sell-off continues?

• The downgrading of companies from investment grade to junk status.

• A decrease in ECB's corporate credit holdings.

• An increase in defaults across all sectors.

• A significant rise in inflation rates.