Junk Bonds of the Financial Crisis Were the Decade’s Biggest Winners
- ‘Great irony’ is strong performance of major assets: Deutsche
- Still, most commodities except gold disappointed with 50% loss
Sowing the Seeds of the 2007 Financial Crisis
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If you’d bought European high-yield bonds the day the global financial crisis erupted, closed your eyes and held onto them through the unprecedented events of the following decade, you would now be sitting on a 100 percent return.
On the other hand, if you’d put your money in most major commodities, other than gold, you would have lost 50 percent. The euro and European stocks would have handed you a loss, but most bond markets, U.S. stocks and the dollar would have been a good bet.