A previously gloomy corner of the debt world has become the biggest winning trade in global financial markets, producing returns that few traders have seen in more than a decade.
Hybrids, the riskiest slice of a real estate company’s debt, have returned more than 75% this year. For the top 10 performers for the securities also known as subordinated bonds, returns amount to about 170% in the period, beating Nvidia Corp.’s stock, the darling of the AI craze, by 20 percentage points.
