Corporate Bond Yields Causing Resurgence In Dangerous Bets

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…