Wilbur Ross on the sovereign debt bubble

I've felt for some time that the ultimate bubble, when we look back a few years from now, is going to be sovereign debt, both U.S. and other, because it's way below any sort of reversion to the mean of interest rates.  If you look at where the U.S. 10-year had averaged over the 10 preceding years, it's around 4 percent. If it reverts back to that level at some point there will be terrible losses in the long-term Treasury market and those will probably be accentuated in other areas of fixed income.

~ Wilbur Ross, as appeared on CNBC, "Sovereign debt the 'ultimate bubble': Wilbur Ross," June 23, 2014