by Justin Spittler
Banks are “reaching for yield.”
You’ve probably heard us use this phrase. We normally say it when we’re talking about investors who buy risky assets in hopes of getting a decent return.
You see, it’s become very hard to earn a decent return in bonds over the last few years.
The U.S. 10-year Treasury is a perfect example. From 1962 to 2007, 10-years paid 7.0% per year on average. Today, they yield just 1.6%.