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Nervous investors run for cover

As crises worsen around the globe, bonds that offer protection are being issued at record levels

The financial tornado that wreaked havoc with investors has sent them scurrying for shelter in record numbers.

Amid continued fears over the rise in sovereign risk, bankers have been dispensing refuge - in the shape of covered bonds - at levels never seen before. The bonds, which are backed by cash flows from loans or mortgages, offer those not chasing high yield greater protection over their investment in the event of a default.

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