From Pragmatic Capitalism:

In a recent Bloomberg interview, Jeff Gundlach said the corporate bond market looks as though "something" is broken. Via Bloomberg:

"Something funny is going on in the world of corporate bonds now – something looks broken," he said. "It seems there's less willingness all of a sudden to be lending money to corporations, maybe because the absolute yields are so low. You're starting to see that saturation point."

If we look at bond markets in general, it’s clear that the market has come unhinged. Ten-year U.S. Treasurys are yielding just 2%. Greek two-year notes are yielding over 50%. German 10-years are yielding 1.85%. Japanese 10-years are at 0.99%. High-yield bonds are sharply higher in recent weeks...

... All in all, this is far from a normal environment. If one looks merely at bond markets, the world appears to have been turned upside down. "Broken" is practically an understatement. If we look under the hood at the current environment, the sovereign and corporate bond markets barely tell the story of the turmoil that is brewing. When it comes to credit, it's clear that Europe is...

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