In the pre-pandemic era, bond investments were largely the domain of institutional funds, shielded from the hustle and bustle of the retail-trading world.

And who could blame them. Fixed-income portfolio managers and analysts faced the Herculean task of seeking returns in a global environment characterized by rock-bottom or even negative interest rates.

Often, they considered themselves fortunate to eke out meager basis points in gains. During this period, pension funds and money-market vehicles were in a frantic search for minimal returns.

The boldest investors ventured into uncharted waters, hunting for yields in high-risk emerging...