Key Corporate Debt Risk Measure Rises to 40-Year High

The video discusses the dynamics of long-term bond issuance and investment. Companies are issuing long-term debt due to low yields, while investors, including pension funds, are compelled to buy these bonds despite the risks. The risks include potential downgrades, as seen with Kraft Heinz, and interest rate fluctuations, which can significantly impact bond values. The video also highlights historical examples like JCPenney's 100-year bond and the potential impact of future interest rate changes.

How has the average duration of investment-grade bonds changed over the past few years?

What potential impact could rising interest rates have on long-duration bonds?