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Top Junk Pummels Treasuries for Safest Profits: Riskless Return

Top-tier junk bonds produced safer returns than debt from the most creditworthy borrowers and the U.S. government over the past five years, a period that included the bankruptcy of Lehman Brothers Holdings Inc. and the biggest bond market swings on record.

The BLOOMBERG RISKLESS RETURN RANKING shows BB rated corporate bonds from U.S. issuers returned 9.5 percent in the period when adjusting for price swings. That’s best among 35 corporate global bond gauges and better than an index of Treasuries, considered the safest and most liquid investment. U.S. bonds rated BB had the lowest volatility and the fourth-highest total return of all groups.