SEC’s Gallagher Sees Bond Bubble Hurting Retail Investors
This article is for subscribers only.
The $10 trillion U.S. corporate bond market has been inflated by companies taking advantage of record low interest rates for the last five years, Securities and Exchange Commission member Daniel M. Gallagher said today.
“It clearly looks like a bubble,” Gallagher said at a market structure conference sponsored by the Security Traders Association. “You have a buildup of assets and you have to think about the downside if the bubble gets pricked.”