GSAM's Swell Says 'Supply Doesn't Drive Pricing in Markets'

The video discusses the impact of Treasury auctions on the market, emphasizing that supply has short-term effects while fundamentals drive long-term valuation. Inflation expectations are crucial, with a low probability of significant inflation in the near future. The credit market is influenced by the Fed's actions, with investment grade markets being protected. Crowding out in fixed income pushes investors to riskier assets. Long-term corporate debt is driven by liability matching, and overseas investors face challenges due to hedging costs and currency risks.

Discuss the concept of crowding out in the high-quality parts of fixed income.

What are the reasons for the demand for long-term corporate debt?

How do overseas investors perceive the US credit market currently?