FYI: In a world where over $10 trillion in government debt sport negative yields, desperate investors are running out of options to ensure even meager returns. As a result, they may be taking on a big risk without even realizing it.
Most investors, for example, understand that buying junk bonds, which have low credit ratings in exchange for higher yields, involves taking on more risk.
But talk about the risk of extended duration and “most retail investors won’t even know what that is,” said Kathy Jones, chief fixed-income strategist at Schwab Center for Financial Research.
Regards,
Ted
http://www.marketwatch.com/story/yield-chasing-investors-are-unknowingly-taking-this-big-risk-2016-06-22/print
