Monday, May 4, 2015

Billionaire Investor Carl Ichan Warns On Bond Market

Ichan nails it. The bond market will be the epicenter of the next crisis.

In part he says:
What's even more dangerous than the actual stock market is the high yield market.

It's ridiculous...I think default rates are going to go up in this market... and the people buy it! The public... I'm going to try to put stuff out and let the public know what they should be aware of because I feel bad for them.

They're buying the yield and they think 'Oh, bonds are going to go up,' but when they start coming down, there's going to be a great run to the exits and at least in 2008 you had a bit of a safety net with the prop desks at banks, but now with the Volcker rule you can't even depend on that.
Here's the full video, which also includes some great life stories and great investment philosophy discussion by Ichan.

(ht Zero Hedge)

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