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Thursday, Dec 13
2012, 7:33 PM
The Fed's obsession with low interest rates is forcing investors to scramble for yield plays,...
The Fed's obsession with low interest rates is forcing investors to scramble for yield plays, which, in turn, has intensified concern about the dangers of a junk bond bubble on the horizon. Wednesday's announcement that near-zero rates will be tied to specific unemployment and inflation targets sent a clear signal to the markets: Those looking for returns in fixed income won't get it from conventional debt instruments. They're going to have to turn to higher-yielding products, and along with that comes greater risk.