Why Investors Are Flocking to Government-Only Funds

The video discusses current market themes, focusing on investor concerns about volatility and the role of money market funds. It examines the impact of Fed policies on investor strategies, highlighting the importance of optionality and risk management. The discussion includes potential interest rate hikes and their implications for the market. The video also explores floating rate notes as a strategy for managing interest rate exposure and credit risk.

What are the main themes in the market currently?

How have investors traditionally avoided volatility in the market?

What is the significance of the VIX being below 12?

What factors are contributing to the current investor sentiment regarding volatility?

What is the expected outcome of the normalization process from the Fed?

How do floating rate notes provide an advantage in the current interest rate environment?

What role does credit risk play in the current investment strategy?