There is a lot of things going on in bonds now. Given the veracious desire for yield, the yield spread between high quality bonds and junk bonds has narrowed significantly since the 2009 debacle.
Personally, I am not a bond investor, but it is important to understand that most companies have a bond component in their capital structure.
Financial leverage added to a company can be a great way to enhance profits. It can also be very bad. Consider this. Looking at the Grand Canyon can be really nice. You just don’t want to get too close to the edge. Too much debt/leverage can take a company to the edge.
For equities, having too much leverage can be disastrous. It can juice earnings in a positive economic environment, but it can pummel a company when the economy turns south. Being a judo player and an ex-wrestler, I personally don’t like being pummeled.
I always think of debt in this way when I look at equities. You don’t want to eat a pound of chocolate. Although, a half of a bar is OK. If you ever ate too much chocolate, it can be a bad experience a little later!
Stay on your guard, keep on your feet and retain your balance. The result is you'll avoid being pummeled.
