The safe but unspectacular yields from higher grade corporate bonds continue to attract those looking for defensive investments, but the more adventurous are turning to the generous returns offered by lower grade issuers

Many funds with high allocations to bonds may not be as balanced as their name suggests, and investors need to be aware of the risks

Most commentators believe that high yield bonds offer significant opportunities to investors as they have priced in a worst-case scenario that is unlikely to occur

Worries over the state of the dollar and the euro have seen increasing levels of interest in local currencies in emerging markets

The all time highs enjoyed by corporate bonds over the past couple of years may be over, but the sector still offers attractive yield-based returns

Flows into high yield bonds remain steady as the asset class continues to appeal to investors attracted by improved corporate fundamentals and the promise of low default rates. Ceri Jones reports.

Flows into emerging market debt have been steadily increasing,writes Ceri Jones, with institutional investors in particular attracted by strong economic fundamentals and the reduced levels of volatility that bonds offer over equities.