Comments on: Why euro zone bond yield ‘convergence’ may be something to fear Shining a light on the dismal science Wed, 16 Nov 2016 01:39:19 +0000 hourly 1 By: blankfiend Tue, 16 Apr 2013 03:10:51 +0000 Underpricing risk is what QE (FED/BOJ) is all about. Eventually, once all of the “safer” assets are gone, the search for yield leads all of this hot money to much more dangerous assets. This is how bubbles are formed, and the foundations for their popping are laid.

Central banks are great at forcing down risk premia, while doing nearly nothing to mitigate the underlying risks.