With yields low, investors seeking income are tempted to seek yield in other sectors where real rates of return after inflation can be found. Higher yields have traditionally been found in so-called High Yield (Junk) bonds with even greater historical returns from Emerging Markets. With High Yield bonds a unique condition occurred after the bottom of the 2008 bear market in equities.
Companies once considered investment grade, particularly in the financial sector, suddenly were found in the junk category. As many of these companies were bailed-out or subsidized by the government the sector became more attractive to opportunistic investors. Demand for yield and return of capital also stimulated investors no longer as interested in equities due to previous heavy losses.