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The Bond Market is Collapsing | How It Impacts You [Video]

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The Bond Market is Collapsing | How It Impacts You

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The bond market is in a difficult place. With rampant inflation and interest rates on the rise, you will likely start seeing a lot of headlines on how monetary policy will affect bond prices.

Why is this relevant now?

Many companies with poor creditworthiness have been able to take advantage of the low-interest rate environment to finance their operations without having to make heavy interest payments.

Roughly 20% of companies in the US are “zombie” firms, meaning that they pay more in debt servicing costs than they make in profits.

Inflation and low interest rates are also keys to this conversation.

Let’s dive in.

This thread was provided by vishalinvests on Twitter: https://twitter.com/vishalinvests/status/1504172581745741824

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⏰ Timestamps ⏰:
0:00 – Intro
1:31 – The Big Picture (Inflation, Interest Rates)
3:04 – What Are Bonds?
5:21 – Bonds vs Stocks
8:01 – Historically Low Interest Rates
9:08 – Corporate Credit Ratings
11:16 – Why Is This Relevant Now?
11:37 – ZOMBIE COMPANIES
11:40 – FTX SPOT
13:17 – ZOMBIE COMPANIES (CON’T)
15:05 – BONDS ARE BREAKING!
18:30 – My Thoughts
21:08 – LOL!

Instrumental Produced By “iAmHaywood” on IG

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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

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