Nikko AM's Vail on Global Markets

The video discusses the potential for interest rate hikes by the Fed, with market expectations leaning towards smaller increments. It also analyzes recent trends in US equity markets, noting unexpected strength and the influence of bond yields. Additionally, the video highlights concerns in credit markets, particularly in the shadow banking sector, where high leverage could lead to financial instability.

What is the current market expectation for the Fed's rate hike?

• 10 basis points

• 50 basis points

• 32 basis points

• 75 basis points

What was a surprising factor in the recent U.S. market performance?

• Drop in bond yields

• Increase in oil prices

• Rise in unemployment

• Decrease in consumer spending

Which region is the speaker more positive about in terms of equity markets?

• U.S.

• South America

• Japan and developed Asia

• Europe

What sector is most at risk due to high interest rates?

• Healthcare

• Non-bank financial sector

• Technology

• Retail

What could cause issues for banks holding leveraged loan bonds?

• Rising inflation

• Inability to sell bonds to clients

• Decreasing interest rates

• Increased government regulation