Breaking Down the Global Bond Market of 2014

The video reflects on the bond market in 2014, focusing on the Fed's October meeting minutes, which marked the end of the tapering process. It examines three bond market components: investment grade corporate bonds, high yield corporate bonds, and developed sovereign bonds. Despite initial predictions, bond prices rose, and yields fell. The video highlights the performance of these bonds, noting that corporate bonds outperformed sovereign bonds. It concludes with a discussion on changing interest rate expectations and the overall bond market performance, which saw an average gain of 6.4% for the year.

What were the key predictions about bond yields at the beginning of 2014?

How did the performance of the Bloomberg Global investment grade Corporate Bond Index change throughout 2014?

What trends were observed in high yield bonds during 2014?

How did the performance of developed sovereign bonds compare to corporate bonds in 2014?

What was the significance of the meeting in October regarding the tapering process?