“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

Rebel Capitalist Pro
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