“probably”
OK, let’s assume that is true - thanks for expounding.
Still, though, I have a hard time getting on board with those who would cash in on high yields in a risky deal (hence the high bond yields) and then go crying when the deal turns sour. The whole risk/return concept gets thrown out of the window, and we all know who gets to pick up the bill in the end... (hint: it’s not the bankers)
Part of the risk is understanding what you are buying. In Greece, some of its bonds were sold with “to be litigated under UK law” — and others had other locations provided. UK law made the bond more valuable for a bunch of reasons, and those who bought UK law Greek bonds (as opposed to those to be litigated in Greece or elsewhere) properly assessed the risk. They made out well as those bonds were paid out on more than the defaulted ones with other litigation locales. Just like you said: determine your risks and measure your reward against it. Or “read the fine print.” I didn’t know any other this until I studied the Greek government’s implosion. Which is not over.