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Personal finance: The search for yield

Exploring some alternatives

By Andy Davis   March 2013

In mid-January and with considerable irony, Mervyn King observed that a widespread “search for yield” is now under way that is encouraging investors to buy increasingly risky assets that promise attractive returns. In spite of being responsible for the ultra-low interest rates that spurred this process, he’s right. A lot of money has recently poured into areas such as lower-quality corporate bonds—pushing “junk bond” prices to record highs during January as yields fell below 6 per cent for the first time. Rock bottom interest rates touch us all, so it’s no surprise that investors big and small are looking well…

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