European instos grow hungry for high yielding EM debt

European institutional investors and bond managers are moving up the risk spectrum, favouring emerging market debt and high yield bonds in current fixed income allocations in the increasingly difficult search for yield. Their willingness to embrace more risk in their fixed income portfolios in order to obtain yields of over 5% is likely to be emulated by asset owners in Asia and beyond as they struggle to reach annual fixed income investment return targets amid historically low in…