The Traderszone Network

Published in TZ Latest News 15 August, 2016 by The TZ Newswire Staff

Is The "Reach For Yield" Turning Into a "Flight To Quality"?

We have frequently discussed the “reach for yield” trade as “lower-for-longer” global interest rate policies have forced investors to seek higher yield through a shift to longer duration and/or lower credit quality.  Pensions and insurance firms have been a big part of the tightening on the long end of the curve as they seek to match asset duration with their long-term liabilities…a never ending feedback loop where lower yields result in more forced buying and even lower yields. 

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