First savers are receiving a low rate of return on investing in short term government bonds because such investment is not economically productive.

FORBES: Stiglitz on Inequality and Monetary Policy

In addition, the IOF rate on non-resident investment in long-term corporate bonds with a duration over four years is being reduced from 6% to zero, with the goal of stimulating private long-term investment and financing, the government said in a press release on Friday morning.

FORBES: Brazil Cuts Taxes As Economy Slows

With other forms of debt either in short supply or too risky, institutional investors are loading up on longer-term government bonds, says Daniel Dektar, chief investment officer of Smith Breeden Associates, a Durham, N.

FORBES: On The Cover/Top Stories