The Perils of Chasing Higher Yields.

The article reports on the move of investors to invest into bond funds for a better return due to the low short-term interest rates. Data from the Investment Co. Institute showed that more than 200 billion U.S. dollars flowed into taxable bond funds while more than 400 billion dollars flowed out of money market funds between January and the end of September 2009. It also cites the impact of higher interest rates on longer-term funds.