Bond Market Signals No 4% Growth in U.S.: Abramowicz

The video discusses the gap between yields on 5 and 30-year Treasurys, indicating slower growth and a 2% inflation rate over the next decade. It highlights concerns about inflation prompting the Fed to raise rates, affecting long-term growth. The US deficit is expected to rise due to increased interest expenses, with potential impacts from higher Treasury yields. The credit market shows record investment-grade bond issuance but weaknesses in high-yield bonds, exemplified by Neiman Marcus bonds dropping 7% in one day.

Discuss the trends in corporate bond issuance and their significance.

What does the recent performance of Neiman Marcus bonds suggest about the credit market?