Understanding risks essential when chasing rewards MAJOR banks don't just offer investors term deposits and shares. There's a range of investments on offer where risk and returns vary greatly. In recent times new subordinated bonds and hybrid risks have increased while returns or yields across all investments have compressed, meaning differentials are lower than historical averages and investors chasing yield are not being as well rewarded for taking on extra risk. The range of investments is shown in the accompanying chart; fixed income investments are highlighted in the orange circle. The table shows a simplified bank capital structure and the priority of payments in liquidation.