and higher. Who is doing that? These are the central bankers. These are the bond vigilantes. These are the people that say because of inflation or other long-term risks that are not getting put out of the system, we need to get paid a lot more money to own the safest riskless asset. As that goes up, basic way to think about that is as the 10-year bond goes up, everything else goes up. And so this black line represents the average price that you have to pay for junk debt.
These are the people that say because of inflation or other long-term risks that are not getting put out of the system, we need to get paid a lot more money to own the safest riskless asset.