The consequences of an unmanaged Greek exit from the euro would be so severe that central banks should continue to support the currency, creating attractive opportunities for credit strategies, according to fixed income specialists ECM

With client confidence at rock bottom, many continue to seek security in government bonds, although corporates offer better yields and may prove a safer bet

Having deleveraged balanced sheets and refinanced themselves on favourable terms, corporates look to be in a healthy state. But slow growth in Europe means investors should favour those with a global reach

However, it is important to address discrepancies within the corporate bond market across countries through a maturity schedule.

Rather than dealing in asset classes, investors should be thinking in terms of categories of risk to protect their portfolios

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