Skip to content
Subscriber Only

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
Video player cover image

A Deep Dive Into Banks: Balance Sheets and 'Cocos'

Updated on

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.