Bond Investors Show Aversion to Risk in September Trade

The video discusses why September was a risky month for bonds, highlighting the significant losses in high yield bonds due to increased supply and geopolitical risks. Concerns about the Fed's potential rate hikes and global economic slowdown are also addressed. The video examines investment trends, noting a shift towards investment-grade corporate bonds. It concludes with potential catalysts for further economic downturns, such as surprise defaults and global economic contagion.

What are the potential catalysts for a further downturn in the bond market according to the discussion?

How do concerns about surprise defaults in high yield companies affect investor behavior?