AI Summary

The bond market has experienced a prolonged period of calm, with conditions not seen since the dot-com bust and the financial crisis of 2007-09. This unusual calm is reflected in junk-bond spreads, which have reached near-record lows. The current state of the market is reminiscent of the pre-crisis period, when investors were largely unaware of the impending financial turmoil. The historical precedent suggests that such calm periods can be followed by a significant market correction, leaving investors vulnerable to a rude awakening.

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