TEI - CEFL And Other Diversifiers For A 15%+ Current Yield Portfolio
The Need For Diversification
Risks in the securities markets seem to be increasing daily. One way to reduce risk is diversification. In 30% Yielding MORL, MORT And The mREITS: A Real World Application And Test Of Modern Portfolio Theory, the degree of risk reduction provided by diversification was discussed. Even when a portfolio consists of many securities that have somewhat similar characteristics and have significant amounts of correlation, diversification can be beneficial.
I have attempted to utilize my longer-term macroeconomic interest rate outlook to manage a high current yield portfolio, given some very significant