The Great Income Squeeze Begins as Fed Spells End to Easy Yields

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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000For income investors, the days of easy returns are vanishing.In recent years, investors were paid handsomely to play it safe. Short-term US Treasuries offered yields above 5% — a rare chance to earn solid returns without locking up capital or chasing risk. For pensions, insurers and endowments, it marked a decisive break from the post-crisis decade of near-zero interest rates. Even if high inflation tempered real returns, institutions that once had to reach for yield suddenly had room to sit still.
