The giant California Public Employees' Retirement System (Calpers) is set to double its high yield exposure to 10% from 5% of its $37bn (€41.5bn) domestic fixed income portfolio.

The $169bn fund, which is based in Sacramento, is looking to outsource the management of the $3.7bn high yield mandate. So far its portfolio has been managed internally as it has been primarily focused on higher credit quality. It will now be expanded to the entire market of high yield bonds as the portfolio grows, the fund said.