Low interest rates on Treasury bonds and under performance in recent years have sent many investors toward alternative investments in search of a higher yield. Investors are, well almost, always aware that higher yield usually means a higher level of risk, but some instruments are not just risky for individual investors, they’re risky for the entire market place. One of those instruments appears to be making a come back. According to a Businessweek article, Synthetic Collateralized Debt Obligations are making a come back. The instruments, which are held responsible for amplifying the effects of the 2008 financial crisis. They involve three…
Corporate Bond Yields Causing Resurgence In Dangerous Bets
HFA Staff
The post above is drafted by the collaboration of the Hedge Fund Alpha Team.