We have regularly chronicled the growing insanity in bond markets over the past few years in these pages, since we feel quite certain that debt will once again prove to be the straw that breaks the bubble’s back, so to speak. The massive surge in “cov-lite” bond issuance in the corporate junk bond universe almost speaks for itself, as does the popularity of “frontier market” government bonds or bonds issued by parastatal entities in these markets (“frontier markets” are what the POTUS colorfully refers to as “shitholes”).
