“Just to give you some context of how huge the bond market is…
One out of five companies is now a zombie company. They have to borrow money to pay interest on existing debt.
Look at statistics. Junk bonds yields (the average not triple C just junk bonds), the average yield in junk bonds is 4%.
I mean you’re talking about yield on a junk bond that is 300 basis points below where treasuries normally should be, which is around 7% (risk-free rate).”
– Michael Pento