Asks about bond market signals, specifically the 10-year yield and what it's telling us.
Host
Jim Bianco
Identifies two drivers for recent yield declines: fear of Middle East war and correlation with struggling private credit/BDC companies, suggesting the bond market fears a systemic event.
Jim Bianco
Argues the BDC problem is for those investors, not systemic for the broader economy. If both war and BDC systemic fears are removed, yields could go up a lot.
Questions why there's so much concern about a repeat of subprime and what would give confidence the risk stays ring-fenced in private sector.
Host
Jim Bianco
Counters systemic fear by citing multiple historical examples since 2009 where illiquid fund gating did not become systemic: hedge funds (2009), UK property funds (2016), COVID-era funds (2020), and real estate funds (2022).
Praises Bianco for helping separate noise from what to focus on, then gives promotional message.