Beating Germany Makes Poland Haven in Europe: Riskless Return

Polish bonds beat German bunds and U.S. Treasuries in risk-adjusted returns since Europe’s debt crisis started three years ago, indicating the country that restructured a $35 billion debt load two decades ago is becoming a regional haven.

The BLOOMBERG RISKLESS RETURN RANKING shows the Bloomberg/EFFAS Poland Government Bond Index of local-currency returns increased the most among 25 countries in the three years through Feb. 6. The Polish gauge advanced 8.3 percent after taking into account price swings, compared with 4 percent for German bunds and 3 percent for U.S. Treasuries. Polish debt, ranked ninth in total return, had the second-lowest volatility after Japan.