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Fund managers get EM bonds warning

Alarm bells are sounding on the headlong rush into the fringes of emerging- market corporate bonds in search of higher yield.
Saturday, September 10, 2016 - 05:50
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GETTING RISKIER: The default rate for high-yield EM corporate bonds climbed above 4% in June for the first time since 2010.

London

INVESTORS scooping up the riskiest emerging-nation corporate bonds in an indiscriminate rush for yield are facing a growing clamour of warnings.

While a 12.4 per cent return this quarter on company debt rated eight levels below investment grade rewarded those who pushed into