Distressed debt investors will have to adapt to a surging equity market and a bubble in high-yield loan markets, finding themselves pushed down the capital structure in search for yield.
If we prefer to have our central bank do our defaulting on our behalf, then eventually inflation risk premiums will reveal themselves throughout the yield curve.
To make money for themselves they reach for yield by lending to more speculative borrowers whom they can charge more interest to, and they too often lend to high interest paying governments whose junkie bonds they buy for a fat yield as well as their implicit security.
On this back side of the island, the West Maui Mountains exert themselves and push the road around like a piece of string, tight switchbacks yield to long swooping arcs that bring me deep into valleys and then shove me back out toward the coast.
When one starts to get aggressive in seeking out yield in today's environment on the fixed-income side, one can easily find themselves losing the "safety" aspect traditionally associated with holding individual bonds to maturity.