Government Bond Bubble
I have been arguing for some time that the credit bubble has been replaced by a government bond bubble because much of the liquidity pumped out by the world’s central banks is not going to increased lending. As this money must be invested somewhere, it has gone to the most favoured asset class: government bonds.
See video below for a CNBC video in which Marc Ostwald of Monument Securities suggests much the same. Ostwald also goes on to give a fairly bearish view of corporate bonds because of rollover risk: