Capital securities provide attractive incremental yield compared with industrials, as well as sound credit ratings and minimal event risk. And as recognition of this asset class continues to grow, Nordic investors are likely to want a piece of the action, says Anthony Biddulph, senior relationship manager for the Nordic countries at Merrill Lynch Investment Managers

Nigel Storer, head of institutional business development – Europe at Aberdeen Asset Management, explains how active investment managers are employing long/short techniques and allocating to European high yield bonds, emerging market debt and Asian fixed income in order to add value