Phil, Mike, and Larry discuss what’s going on in the markets after the yield on the 10-year U.S. Treasury bond hit 5% last week for the first time since 2007, and the S&P 500 posted its worst week in a month and fell below its 200-day moving average. They then talk about how the number of junk bonds set to mature in the next 36 months has soared to levels last seen right in 2007. The junk bond issuers that are poised-to-refinance make up 19% of the total high-yield market, but they will likely have trouble surviving in an era of prolonged high interest rates. This may drive a lot of these names into bankruptcy causing a major credit event.

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