Larry McDonald, former Lehman Brothers trader and founder of The Bear Traps Report, warns that current bond market conditions mirror the summer of 1987, just months before the Black Monday crash of October 19. Corporate bonds from Alphabet and Oracle are yielding above 7%, while Alphabet’s 100-year bond issued in February 2026 is already trading at around 87 cents on the dollar. McDonald warns of bonds beginning to « steal market share » from equities, a mechanism that contributed to the 1987 crisis when U.S. 10-year Treasury yields reached 9.89%.
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