The hunt for yield takes a risky turn

The types of high-risk debt securities that triggered the GFC are on the rise again, and the global fallout could be catastrophic.

At the epicentre of the 2008 financial crisis was the role of complex securitised debt products, most notoriously the securitisation of the riskiest tranches of collateralised debt obligations which were dubbed CDO squared products. Apparently, and disturbingly, they’re making a comeback.

The latest securities markets risk outlook issued by the International Organization of Securities Commissions overnight paints a disconcerting picture of the consequences of the global hunt for yield in a low interest rate environment.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles