Bond, Junk Bond: A Casino Royale?

The Federal Reserve’s (Fed) extraordinarily low interest rate policies have encouraged fixed income investors to take on evermore exposure to credit risks. With the global economic recovery looking more and more unstable with every new piece of economic data released, fixed income investors may be following a strategy akin to gambling at the roulette table. Investors may want to be careful not to let this transpire into a bad vacation in Vegas; we are concerned many investors may find themselves left out of pocket, hung-over with a bad taste in their mouth. As a result of the extremely low rates available in government securities and “high quality” corporate issuers, fixed income investors have flocked into lower credit quality issuances… . . . → Full Story: Bond, Junk Bond: A Casino Royale?