“It’s clear that with central banks intentionally engineering interest rates to be at historically low levels, thwarting the rules of supply and demand, the desperate hunt for yield will continue unabated and risk will continue to be mispriced.” – Markets Are Restacking the Building Blocks of a Financial Crisis
interest rates
““A prolonged period of low interest rates, of the sort we are experiencing today, can create incentives for agents to take on greater duration or credit risks, or to employ additional financial leverage, in an effort to ‘reach for yield,’” the former Fed governor Jeremy C. Stein told a group of investors and bankers at the New York Athletic Club in February.” – Markets Are Restacking the Building Blocks of a Financial Crisis