The past 12 weeks saw a massive rotation from growth to yield, under the premise that it's "safe"...which is a colossal trap...
In 2001-2004 the Fed induced people to load up on 1% adjustable rate mortgage debt. Then the Fed obliterated them with 17 interest rate hikes. Fast forward to now...Central Banks have systematically eliminated volatility, conning sheeple into believing they've eliminated risk...
The most lethal bubble contest continues:
Barron's April 30th, 2016
Is the Bull Market Running Out of Steam?
"On Monday, Atlantic City is expected to miss a $1.8 million bond payment, which would be the first default in the Garden State since the 1930s."
"That, of course, is dwarfed by the financial crisis in Puerto Rico, which faces a $422 million debt payment on Monday"
April 29th, 2016 BondBuyer
Massive Municipal Bond Inflows Continue For 30th Straight Week
"We usually don't see such consistent inflows this time of the year...inflows into municipal bond mutual funds have averaged $1.1 billion per week year to date, which is higher than recent years....Anytime you get a billion that is a big number, but to have a billion, on average, is huge,"
"No volatility means no risk"
Reuters, Mar. 3, 2016
Junk Bond Inflows Highest On Record
RISK IS BINARY
PANIC IS INEVITABLE