Investment Grade Credit Underperforming High Yield

The video discusses the fixed income market, focusing on the bond update by Lisa Bromwich. It highlights the surprising performance of high yield bonds outperforming investment grade bonds during a risk-off period. The analysis covers year-to-date performance, showing significant losses for investment grade and slight gains for high yield. The discussion emphasizes that the current situation is not just about falling rates but also about credit risk, which has reached its highest levels since 2016.

What was the unexpected trend observed in the fixed income market?

• High yield bonds underperformed investment grade bonds.

• Investment grade bonds outperformed high yield bonds.

• High yield bonds outperformed investment grade bonds.

• Both high yield and investment grade bonds performed equally.

During a risk-off period, which type of credit showed significant underperformance?

• High yield credit

• Investment grade credit

• Both high yield and investment grade credit

• Neither high yield nor investment grade credit

What was the performance trend of high yield debt from the beginning of the year?

• No change

• A significant gain

• Significant losses

• A slight gain

What is the main focus of the current credit story?

• Falling interest rates

• Stable credit risk levels

• Rising oil prices

• Implied credit risk in investment grade bonds

Since when have the credit risk levels been the highest?

• 2016

• 2020

• 2010

• 2018