This Reuters article
shows another downside of the Fed's policies:
the Federal Reserve's latest move to juice the U.S. economy by purchasing $40 billion of agency mortgage-backed securities every month is forcing some money managers who had previously been feasting on those securities to get more creative. The only problem is they may be getting out of their comfort zones and taking on too much risk.
Money managers are not the only ones being forced to take on too much risk in the search for yields. It might have painful repercussions for both those who took on the risk and the economy.