Hamish Douglass, the founder of Magellan says he thinks investors are seriously mispricing risk in both credit and equity markets, which could lead to a...

Hamish Douglass, the founder of Magellan says he thinks investors are seriously mispricing risk in both credit and equity markets, which could lead to a triple-whammy situation. In this video (which is a follow on from the article last week) Douglass outlines how there's a possibility that when 1) US Treasury rates rise, 2) Global bond spreads will blow out, and 3) Liquidity in credit and high-yield markets could become a problem (if investors run for the doors). Should interest rates start to normalize in the United States... we could see quite a lot of volatility. With that volatility you could have self-reinforcing events that as prices start to move in the credit markets, and people start to get nervous, they will seek liquidity. If they can't take it out of their credit portfolios, they then come and take it out of their equity portfolios. Watch the video here