BOE's Schmelzing: Lessons From 800 Years of Bond Trading

The video discusses the historical context and current dynamics of the risk-free rate, highlighting its lowest point in 800 years. It examines the pressures for market reversal due to rising inflation and the impact of quantitative easing (QE) policies on bond yields. The discussion includes the role of the European Central Bank (ECB) in influencing risk levels and the challenges of market normalization as QE policies are withdrawn.

In what ways does the text suggest that current risk measurements may be flawed?

What does the text imply about the bond yields in historical context?