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.