Investors are returning to the riskier, less developed bond markets in
Stuck for a place to find yield, they are targeting frontier markets - a tier below the larger, more established emerging economies - in
"There is so much risk appetite; people are being pushed into anything that has yields," Fund Manager at
"It seems that the market has quite a short-term memory," he said.
United States Treasury yields have not risen as high as many predicted a year ago, when the then Federal Reserve Chairman,
This programme, designed to boost the US economy, had kept yields depressed and encouraged investors to move funds into emerging markets for better returns.
The prospect that the purchases would be wound down prompted an emerging market sell-off last year, but this has partly unraveled as investors now adapt to the reality of life without Fed support.
Shortly before Bernanke changed the investment landscape,
The bond's yield rocketed to nine per cent within weeks as Western investors took their money back home, where yields were rising and the outlook was safer.
Specialist fund managers say it is important that investors discriminate between country risks, rather than buying a bond for its yield, regardless of its domestic policies.
Yet the renewed enthusiasm for all things high-yield means
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