The Quest for Yield: Investing in REITs and Bank Debt

What has been the primary driver of bond portfolio performance in recent times?

• Yield

• Credit quality

• Inflation

• Duration

Which type of mortgages are considered as an alternative investment opportunity?

• Subprime mortgages

• Adjustable-rate mortgages

• Legacy non-agency mortgages

• New agency mortgages

What is a significant factor contributing to the performance of REITs?

• Government subsidies

• Decreasing property values

• High inflation rates

• Re-indexing and categorization

What is a challenge faced by banks that affects their profitability?

• Rising operational costs

• Increasing loan defaults

• Compressing net interest margins

• Decreasing customer deposits

In the banking sector, where is there potential value according to the discussion?

• Bank equities

• Investment-grade financials

• High-risk derivatives

• Short-term loans