Ken Shinoda, a fixed income manager, got his start in investing during the housing bubble of the 2000s.
Now he works for Jeffrey Gundlach, the "bond king," who established a $122 billion bond firm.
He explains why home sellers will lower their prices and why this will not result in a market crash.
Bond investing can be tedious when compared to its more glamorous equivalent, equities.
Depending on how you spin it, you can always make a case for buying stocks all the time. However, in the world of fixed income, it's all about limiting risk.
The housing market in the United States is experiencing a surge in demand that approaches that of the early 2000s.
According to RedFin data, the average home price is up 15% year over year, with more than 58 percent of homes selling above list price in April.
In the United States, the era of cheap monetary policy, along with the pandemic's ability to change working and living patterns, generated a sellers' market.