Whats Driving Increased Bond Market Volatility?

The video discusses the recent increase in market volatility as the Federal Reserve plans to end its bond purchases and potentially raise interest rates. This has led to uncertainty among investors about whether to invest in riskier assets. High yield bonds have seen significant swings, with some firms seeing them as a good buy due to high yields, while others are cautious about a rising rate environment. Despite expectations, yields have fallen, defying predictions and contributing to market volatility. The Federal Reserve and long-term Treasury investors have benefited, while some hedge funds have suffered. The global economic outlook appears weaker, with concerns over oil prices and Ebola.

How have investors reacted to the Federal Reserve's potential changes in bond purchases?

What are the implications of rising interest rates on high yield bonds?

What factors are contributing to the current volatility in the financial markets?

In what ways have hedge funds been affected by the current market conditions?

What global factors are influencing the outlook for economic growth?