Bank Bonds Beat Industrials as Bill Advances: Credit Markets

Bank bonds are outperforming debt from industrial companies by the most since March as investors wager the biggest overhaul of Wall Street regulations since the Great Depression won’t cripple profits at financial firms.

U.S. bank bonds returned 1.35 percent this month, the second-best performing class of investment-grade debt after tobacco companies, compared with a gain of 0.5 percent for industrial companies, according to Bank of America Merrill Lynch index data. Non-financial firms returned 2.09 percent in June versus 1.89 percent for banks.