Why One Bond Guru Is Dismissing Talk of a Crisis

The video discusses market sentiment and investment strategies, focusing on the optimism of Mickelson regarding investment grade debt. Despite concerns about leverage and debt loads, Mickelson remains positive due to strong company earnings and a growing US economy. He suggests that the lower end of investment grade and some high yield investments present opportunities, especially in the Triple B segment, which he believes is unfairly criticized. The video emphasizes the importance of economic fundamentals and the potential for market opportunities despite looming concerns.

What is Mickelson's outlook on investment grade debt despite potential long-term challenges?

• He is pessimistic and advises against it.

• He is optimistic due to strong company earnings and a growing US economy.

• He believes it will lead to a recession.

• He is neutral and undecided.

How does Mickelson view the current debt loads of investment grade companies?

• He is concerned about the high debt loads.

• He acknowledges higher leverage but is not worried due to healthy debt servicing.

• He believes the debt loads are unsustainable.

• He thinks the debt loads are lower than ever.

What is Mickelson's perspective on interest rates compared to the last recession?

• Interest rates are higher now than during the last recession.

• Interest rates have no impact on debt servicing.

• Interest rates are about the same as during the last recession.

• Interest rates are relatively lower now, making debt servicing healthier.

Which type of bonds does Mickelson find appealing despite criticism?

• Triple A-rated bonds

• Triple B-rated bonds

• Junk bonds

• Government bonds

What does Mickelson suggest about the real selling opportunity in the bond market?

• It is in government bonds.

• It lies in the lowest-rated bonds.

• It is one ratings level higher than Triple B.

• It is in the highest-rated bonds.