Subject: Re: Howard Marks - It is 1997
"Only if you hold them to maturity (let's say 10 years); even then the returns could be lower than 6-7% if we have a recession in the interim period. We are at a historically low credit spreads right nown which discounts any possibility of adverse events which is also why stock market is overvalued."

An even worse possibility would be stagflation. A recession combined with high inflation. So not only do you not get paid on some of those bonds, but inflation eats away at the return.