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On this episode, “Bitcoin Bottom Line” hosts Steven McClurg and C.J. Wilson met to discuss bonds and crypto. 

Wilson opened by asking McClurg what changes he has seen in the bond market. McClurg stated that when it comes to bond yields, the Federal Reserve tightens and makes it more expensive to borrow. More prominent institutional investors must have a certain amount of their assets in fixed income for safety; therefore, large institutions will push the yield down for companies issuing debt that should go out of business. Sears and Toys “R” Us survived longer than they should have, while Nordstrom is struggling to keep its doors open and cannot get credit to buy inventory. As the Fed begins to tighten, it increases the size of its balance sheet by continuing to expand the upper growth of purchasing. McClurg believes that the market is finally starting to price in tapering but has failed to price in interest rate heights. 

By Antoni