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Goldman, Fitch Warn About Bond Bubble

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  • Description

    FBN's Liz MacDonald on warnings on the corporate bond market.

  • Duration 2:12
  • Date

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Our thanks so much -- -- -- the -- put back in the 141000 what she's talking so we're talking that this Charlie gets rid of this.

Great rotation money flowing into equities and out of bonds in fact some big Wall Street players are warning investors -- a dangerous bond bubble.

That's being creative last couple years could actually start to threaten their investment portfolios now.

Elizabeth -- -- feedback bottom -- -- -- he's got the fire engine on these alarms right now.

Listen will be there to facilitate that the deals.

Once investors head for the exits but we cannot be the buyer of last resort Lloyd Blankfein briefly also saying that investors are not protected enough against the bond bubble -- Goldman Sachs and its own reportedly is in making these moves -- basically cutting their value at risk dance 67%.

Vs a year ago and they're locking in lower rates right now and what we're hearing to us from Fitch.

-- just bracelet put out a warning about the corporate bond bubble the Fitch is essentially saying watch this ad rates at their rates revert rapidly.

To preach early 2011 levels.

Typical US corporate bond losses will have basically hit 15%.

And the thirty year bonds could suffer a good look at that 26%.

Loss so.

-- -- life insurance industry relies heavily on bonds for their propellers -- pensions to severe pretty much exposed.

-- bond market -- and they weren't there when this Marietta talking about as a 2002 route.

Never was up on a lot of defaults than the -- bond market -- gyrate at and that's a scenario they're talking about they don't have any timing -- for when it could happen.

But they say that's why they think it would happen now they -- there's going to be a lot of default it what's the catalyst it right now they're saying that the catalyst could be some defaults but again they don't say who what when where.

Or you know why or how.

None of that yet they would even had a timing of those but the effect of these two big players are coming out the warning is pretty sick -- it is it ends you know they -- they're saying listen you gotta start protecting yourself now because in that it's a -- woman is -- We can't be the buyer of last resort we can help you get out of the bond market we're not going to be -- to pick up -- bonds -- an interesting to pick up your bonds rate thank you lynch.

Well.

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