The $102 Billion of Bank Debt That's Making Investors Nervous
Risky financial bonds were best performers in credit in 2015
Last year's gains have been wiped out amid weaker earnings
Tom Beardsworth and Cordell Eddings
Last year’s sure thing in credit markets is quickly becoming this year’s nightmare for bond investors.
The riskiest European bank debt generated returns of about 8 percent last year, according to Bank of America Merrill Lynch index data, beating every type of credit investment globally. In less than six weeks this year, those gains have been all but wiped out, even after interest payments.