Sub investment grade paper is expected to boost returns

Activity in the high yield fixed income sector is expected to grow substantially in the coming months, as previously risk-averse investors seek higher returns from emerging markets and distressed securities.

The pull of high yields, coupled with the earnings potential of fallen angels ' bonds downgraded from investment to speculative grade ' have made the sector attractive, although some fund managers remain cautious given the poor state of many company fundamentals.

One such area is US telecoms

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