With interest rates at generational lows, investors are in search of yield. The 10 Year U.S. Treasury is currently yielding around 1.7%. As late as 2006 the 10 Year yielded over 5.0% and in 2000 it was over 6.0%. By keeping short-term interest rates pegged at basically zero, the Fed is forcing investors to reach for yield and move out further on the risk spectrum.
