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Michael A. Gayed highlights that call volume activity and leverage are at historic highs, suggesting a worsening situation.
He points to intensified market activity driven by increased risk-taking.
Gayed has previously raised concerns about unsettling trends in the bond market and Japan's yields, citing potential risks for investors in a recent analysis. In another report, he argued that most bullish scenarios rely on the expectation that yields will fall while spreads remain tight, which he views as a contradiction to long-term patterns, according to his statements on credit trends. These comments follow his latest warnings about elevated call activity and leverage.