Low global yields, short memories propel frontier debt revival
* Investors seek higher yields in frontier debt markets
* Buyers flock to debut Kenya dollar bond despite attacks
* Developed economy yields have risen less than some hoped
* Market seems to have short memory after past setbacks
By Carolyn Cohn
LONDON, June 17 (Reuters) - Investors are returning to the riskier, less developed bond markets of Africa and other frontier economies, burying memories of past setbacks and plunging in after global yields failed to rise as much as expected.
Ignoring attacks by Somali-linked Islamic militants in a Kenyan coastal town which killed at least 50 people, they flocked to the country's debut dollar bond this week,
The $2 billion issue - sub-Saharan Africa's largest dollar frontier market bond - was seven years in the making but investors said the timing was right for the junk-rated sovereign borrower.
Stuck for a place to find yield, they are targetting frontier markets - a tier below the larger, more established emerging economies - in Africa as well as Asia, eastern Europe and Latin America. Continuación...