High yield bond and equity funds are increasing their interest in investing in convertible bonds, a market in which they have not traditionally been involved, as yields of over 20% far outstrip levels available in other markets, analysts said.

Around 25% of convertibles issued in Emea and over half of the equivalent Asian bonds now pay over 20% per year, according to Barclays covered bond research. Those yields are far above what is now available for equivalents in the equity markets, where the main indexes hit ten year lows over the past week.