Crisis Erodes 75% Junk Bond Gains as Losses Spread: Euro Credit

Junk corporate bonds are turning into a losing bet in Europe as surging sovereign yields infect assets that just 18 months ago were handing investors returns of more than 75 percent.

Speculative-grade bonds have lost 1.1 percent on average this month, adding to the 1.6 percent investors forfeited in June, according to Bank of America Merrill Lynch data. They’re being beaten by German bunds, commodities and investment-grade company notes, while stocks are still proving a bigger casualty of the euro-region crisis.