- Pension funds need 7% returns to meet liabilities
- Only things that make that returns are junk bonds wrapped in variance swaps
- Central banks buy junk bonds to keep market liquid
- Pension funds meet liabilities buy buying junk bonds from zombie corporations
- Junk zombie corps stay afloat from stimulus
- Gresham's law kicks in, bad money pushes out good money
- Huge rotation into junk and out of companies that innovate and grow (tech)
- Only things that make that returns are junk bonds wrapped in variance swaps
- Central banks buy junk bonds to keep market liquid
- Pension funds meet liabilities buy buying junk bonds from zombie corporations
- Junk zombie corps stay afloat from stimulus
- Gresham's law kicks in, bad money pushes out good money
- Huge rotation into junk and out of companies that innovate and grow (tech)