Previously risky real estate bonds are beating Nvidia’s returns

FILE PHOTO: An Nvidia Spectrum-X is displayed at COMPUTEX in Taipei, Taiwan June 4, 2024. REUTERS/Ann Wang/File Photo

NEW YORK: 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.