Bond Market

“The rest is it goes into capital and retained earnings with us, which we leverage up through the bond market, which is mostly, I would say about 60%, Private money, as in insurance companies and pension funds and asset managers. But 40% could be central bank's…”

“The problem is, as a lot of economists have talked about, and as we've seen in the bond market, is that that could Really push up the long end of the curve, because if you suddenly start to flood the market with capital in the short term by dropping rates toda…”

“Probably the bond market forces it on the politicians, forces it on Washington.”

“I think what's going to happen is the bond market will sensitize this budget at real rates. They're not going to use the 3.6 that Freebrook pointed to. They're just going to re underwrite this at five, five and a quarter, five and a half.”

“Bond markets hate war. War is expensive or is inflationary.”

“If you're going to allow higher inflation, basically monetizing the debt, the bond markets are going to make the government pay higher interest rates on its debt, right? So we're going to be in a world of higher interest rates, which means that equities get cl…”

“So we think there's a probability that the default rate in the loan market might exceed that in the bond market. And the recovery rate in the loan market might be lower than that of the bond market, which is different than what it was in the past.”

“Up until that moment, the bond market had no active or access points, active participation or access points into real estate. And I kind of opened that door or built that bridge for that wealth of money to kind of come in and express itself into real estate.”

“So the stock market has like 10,000 issues. The bond market has nine million individual CUSIPs.”

“I think liquidity risks right now are underrated and underappreciated. There's a lot of optics of good liquidity in markets. But a lot of that liquidity, especially in equity markets, is just day trading back and forth, and if you need to get out of a fairly s…”

“I think I mentioned a while ago that dollars were kind of locked up in March and then I went to this conference and people were like, yeah, we're loosening up and making a plan again in July because the market was kind of turning back up and now equity markets…”

“I believe that's setting up a much bigger bond sell-off and interest rate rise than the markets are expecting.”

“I think that came to the forefront in the fourth quarter of 2018. I think there were people that wanted to trade bonds that simply there weren't bids and offers out there for the most part.”

“Let's look at trailing price momentum for the bonds and the stocks, and let's look at things where the stock went way up and the bonds went down. Who's right? Turns out, in those cases, that the bond market's right. The stock should come down.”

“So they will be economic animals. They will look for the best return for the reward of what, for the risk they're taking, and there is no reason why they come in and just subordinate themselves to bonds and save the bond market.”