from Zero Hedge:
While ZIRP will apparently be with us for the next millennium – or instantly not – the dominant flow from equity funds to bond funds (whether driven by risk-aversion or demographics – or fundamental deflationist views) remains the key technical for both issuance and pricing/demand. Of course, for now, it seems that nothing can break this virtuous circle of reinvesting coupons and principal but as retirees de-boom and spend that income drainage will continue and the next few years show a rather dramatic wall of corporate bond maturities that will need to be refinanced (or paid down). Is it any wonder that corporations are keeping their cash-piles high and not just hose-piping it out to shareholders or M&A?
Read More @ Zero Hedge.com
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