Reaching for yield: Evidence from households

• 成果类型: Article
• 署名作者: Gomes, Francisco; Peng, Cameron; Smirnova, Oksana; Zhu, Ning
• 署名单位: University of London; London Business School; University of London; London School Economics & Political Science; Shanghai Jiao Tong University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104057
• 发表日期: 2025
• 关键词: Reaching for yield; portfolio choice; RETAIL INVESTORS; prospect theory

摘要

The literature has documented reaching for yield-the phenomenon of investing more in risky assets when interest rates drop-among institutional investors. We analyze detailed transaction data from a large brokerage firm to provide direct field evidence that individual investors also exhibit this behavior. Consistent with models of portfolio choice with labor income, reaching for yield is more pronounced among younger and less-wealthy individuals. Consistent with prospect theory, reaching for yield is more pronounced when investors are trading at a loss. Finally, we observe and discuss the phenomenon of reverse reaching for yield.