In early June, I remarked that: There is little doubt, then, that liquidity in most financial markets is high today and that investors seem willing to take risks, even at today's marketprevailing prices. In the United States, term premiums on long-term Treasury yields are very low, corporate bonds appear to be nearly “priced for perfection,” and stock prices are setting new records.
Credit markets are highly accommodative for issuers, and the volume of loans to finance highly leveraged transactions is escalating rapidly.