Reaching for Yield
Merriam-Webster defines chimera as “an unrealizable dream.” Such is the case for any bond that purports to offer safety, high yield and liquidity. Short-sighted yield chasing is the eternal chimera of higher yield without higher risk. Investors say they want safety and income; what they really want is all the income they can get and the illusion of safety. Reach for yield at your own peril.