Why Creditsights's Cisar Likes 'Belly' of Investment-Grade Curve

The video discusses fixed income markets, focusing on price movements rather than yield changes. It highlights the rare occurrence of investment grade bonds trading at a discount to par, recommending attention to the belly of the curve and high yield markets. The discussion includes the impact of geopolitical risks, particularly the Russia-Ukraine situation, on market dynamics. The video also explores the closing window for cheap financing and the potential for rate-driven sell-offs in the credit market. Despite volatility, the presence of cash on the sidelines suggests a potential clearing level for institutional investors.

In what ways can a rates-driven sell-off impact the credit market?

What indicators suggest that institutional investors might step back into the market?