El-Erian: Markets Too Obsessed With Interest-Rate Risk

The video discusses the bond market's recent volatility, emphasizing the importance of understanding liquidity, interest rate, and credit risks. It highlights the global economic slowdown and the potential for policy mistakes by the Federal Reserve, which could exacerbate these risks. The discussion stresses the need for careful analysis of market signals and the implications of financial conditions.

What signs indicate that the market is becoming concerned about credit risk?

In what ways is the current market environment described as 'loose'?