Walking the Yield Plank

So much of fixed income investing is about your willingness to walk out the yield plank – how far out, for how much risk? This graphic from Michael Cembalest of JPMorgan makes that point nicely, showing the kinds of risks, both in terms of issuer and duration, you must take right now to get beyond nominal pre-tax income.

Related posts:

1. Links: Iceland, Leeson, China, Swaps, Yield Curve, etc.
2. Diversions: Trail-Walking Models
3. WSOP and How Walking Away is the New Buying
4. Sectoral High-Yield Concentrations, Then and Now
5. Inverting the Inverted Yield Curve Worries