For those averse to cliché, the expression search for yield’ will have become far too familiar over the last seven years. But there is a good reason for that investors have been starved for too long of decent opportunities to generate returns.
Record low interest rates and a rash of bond purchases by major central banks designed to stimulate investment and consumption and prevent any number of supposedly imminent emerging market debt crises have depressed bond yields and channelled cash into risky markets and racier stocks.
That in turn, has pushed down yields in those markets, meaning the fund flows into emerging markets are exacerbating a problem...
¬ Haymarket Media Limited. All rights reserved.
