In an era of ZIRP — and 2% Ten Year Treasuries — Investors looking for yield have to scramble to achieve any form of reasonable return. Investing in this area is about more than yield, also known as “Return on Capital;” It is also about safety, better thought of as “Return OF Capital.”
Kudos to Barron’s for the nice primer on various yield investment vehicles — and the Steely Dan reference — and the emphasis on risk though out the article. Especially when it comes to yield, investors MUST understand the risks they take. An old Wall Street expression: There are fewer errors that are more expensive than chasing yield.
Anyway, for those of you interested in creating your own yield portfolio, you can begin your homework with this table of yield instruments:
Disclosure: The only holding I have mentioned in the article is a fund in family accounts (held for more than a decade) — the AllianceBernstein Income fund (ACG).
Reeling In the Yields
Barron’s NOVEMBER 19, 2011