Why Everyone Is Moving to Investment Grade Bonds

The video discusses the current trends in bond markets, highlighting the preference for investment grade bonds over high yield bonds despite central banks encouraging risk-taking. It explores the implications of this trend, including the limited recovery in high yield credit and the challenges faced by junk-rated companies in securing financing. The video also examines the role of ETFs in the market, questioning their impact on liquidity and stability, especially in volatile conditions.

What are the potential consequences if a major company that can easily sell debt defaults?

In what ways do ETFs impact liquidity in the current market environment?