Faculty & Research | The University of Chicago Booth ...

Now some fixed income securities are obscure, but we can all buy the Vanguard corporate bond and high yield funds. (CDOs, tranches of mortgage-backed securities, etc.) The average investor is marginal, and is leaving a huge expected return on the table. This seems like pure, unintermediated risk aversion. Macroeconomics. Taking this line just a little bit further – and perhaps further than ... ................
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