Masters: Everything in Bond Market Priced to Perfection

The video discusses the paradox of safety in the bond market, where perceived safe investments have become risky due to high prices. It highlights the risks associated with professional money and duration exposure, emphasizing that many investors seek safety in duration, which may not be effective. The discussion extends to the stock market, where stocks with bond-like characteristics are becoming expensive. The video also covers the implications of corporate bonds and the increased sensitivity to interest rate changes, advising against taking on more duration risk.

Discuss the relationship between corporate bond indices and interest rate sensitivity.

What are the risks associated with stocks that have bond-like characteristics?