Surprising Rebound Seen in Riskiest Sovereign Bonds Worldwide

The world’s riskiest sovereign bonds are having a moment as Wall Street investors seek out high yields from countries showing early signs of market-friendly pivots.

Junk-rated government dollar bonds from El Salvador to Nigeria and Turkey are outperforming this month as money managers take on risky bets in exchange for out-sized returns. The question now is whether orthodox policies can keep luring capital as major central banks reiterate their commitment to bring down inflation.

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