This is something that I have been casually watching.
In a nutshell, there is the worry that when people want to sell their bonds, there won't be buyers, which will force deeper discounts, which will induce more people to unload their bonds, which will end with dogs and cats sleeping together.
There is a growing consensus that the Fed is going to raise rates for the first time in forever next month. This could be the pin that pricks the bond bubble. Or, maybe the fear of a hike will be enough if people start sitting down before the music stops.
I wonder how big of a deal the CDS's on these bonds is. Big enough to repeat what happened to AIG?
As businesses have been issuing bonds to pay dividends or buy back stocks, I expect this will effect equities.