Bondholders who held their nerve as Greece sparred with the euro region are being rewarded with a world-beating return of 11 percent this year.
Sticking with Greek securities through the election of the anti-austerity Syriza party a month ago — and the turmoil of ensuing funding negotiations — earned investors more than double the 4.2 percent profit on Danish securities, the next-best performers, according to Bloomberg indexes. Treasuries earned 1.2 percent in the same period.
Traders of Greece’s bonds were relatively sanguine as they braved heightened volatility and warnings from strategists that the nation risked an exit from the currency bloc. Their resilience kept the 10-year yield below its five-year average throughout the upheaval, and by Tuesday, when euro-area finance chiefs approved an extension of financial aid, it was more than a percentage point lower than its Dec. 31 close.