Don’t get me wrong. I like corporate bonds as an asset class. And I think private sector investors like you and me should actively consider owning corporate bonds at any given time as part of managing a broadly diversified portfolio. Instead, where I start to think it becomes a REALLY lousy idea to buy corporate bonds is when you’re talking about a major global monetary policy institution like the European Central Bank (ECB), which is set to begin buying corporate bonds as part of its ongoing once extraordinary now pedestrian stimulus program. Global central banks have long ago crossed the market intervention line, which is bound to only add to the eventual unintended consequences down the road.
Please click on the link to read more of my article on Seeking Alpha.