The run on junk bonds shows the new appetite for risk

Risk on, take the risk – that is the motto on the capital markets that has surprised most analysts and investors in this young year. The willingness to take risks can be seen everywhere: The Dax got off to a historically good start to the year, the prices on Wall Street are also rising well, and cryptocurrencies such as Bitcoin, which were so battered last year, are in demand again.

But the new willingness to take risks is not only evident in these markets. A look at the bonds of emerging countries, which are particularly at risk of default, shows how courageous investors are at the moment. Investors have already made double-digit returns this year with dollar bonds from countries such as El Salvador, Lebanon, Sri Lanka, Argentina, Pakistan and Ethiopia.