"There are few other opportunities for that level of yield in a quarterly dividend where the underlying assets are secured, and the duration is three months, " says Neuberger Berman fund manager, Joseph Lynch.
In either case, with that level of volatility, yield chasers are forewarned what reaching for a 4.8% payout today could entail if the economic picture darkens.
By putting a short deadline on a project, people can hit a level of productivity that can yield very impressive results.
FORBES: MHacks At The University Of Michigan Was The Largest Student-Run Hackathon
It isn't enough to compare the spread to its average, Mr. Fridson says, because the average doesn't reflect the current level of default risk, the strength of the economy, the yield on government bonds or the availability of credit.
At the beginning of 2004, the real yield of the high yield index stood at 5.20%, only slightly higher than the May 2011 level of 4.78%.
German government bonds, judged to be the safest in the euro area, jumped in early trading, with the yield on 10-year Bunds hitting its lowest level of the year, at 1.37%, though it later rose to 1.4%.
The 10-year note's yield fell to 3.4%, the lowest level of the year.
Mr Draghi said flatly that the ECB had "never" discussed capping the cost of borrowing - the sovereign bond yield - at a certain level, in Italy and anywhere else.
While this can make for a high dividend yield, it also introduces some volatility and uncertainty into the level of payments from year to year huge dividend payouts are common when a REIT turns large profits, versus smaller payouts or even periods of no dividends in times of losses.
FORBES: Why Two Harbors Investment Is a Top 10 REIT Stock With 9.23% Yield
Of note, the two-year Treasury note yield dipped to its lowest level since May 2004.
The yield on the benchmark 10-year Treasury note jumped from its lowest level of the year, as traders moved money out of the safety of government bonds.
The yield on mutual funds that invest in Treasuries is less than half its level of a decade ago, according to Lipper, another research outfit (see chart).
But when the central bank overrules all of that and forces rates above or below their natural level, the link between effort and yield is severed.
Ahead of the gathering, the yield on Spain's 10-year bonds surpassed the 7% level that forced Greece, Ireland and Portugal to accept bailouts.
The yield on high-yield bonds has risen to 9.33%, the highest level since 2002 and a sign of growing default risk, even though defaults remain near a historic low.
应用推荐