Who's hunting yield in bond market's risky regions?
* Yield hunt sees investors chasing riskier bonds
* Hedge funds among major buyers of Cyprus, Greece
* Longer-term investors join queue for scarce yield
* BIS has warned of "worrying" signs in credit growth
By Nigel Stephenson
LONDON, July 3 (Reuters) - The hunt for yield in an era of diminishing interest rates has lured investors into ever riskier regions of the bond market, prompting some to ask: who is buying this stuff and are they suffering short-term memory loss?
In June, euro zone member Cyprus returned to the market just a year after international lenders bailed it out and the government forced bank depositors to forfeit uninsured savings.
Ecuador, which defaulted in 2008 and in 2000, raised $2 billion with a bond, and Kenya, troubled by attacks by Somalia-linked Islamist militants, had investors offer it more than four times the $2 billion it borrowed via a debut Eurobond.
In April, twice bailed-out Greece, whose 2012 debt "restructuring" was classed as a default by credit rating agencies, borrowed 3 billion euros in five-year bonds. Investors expressed interest in buying 20 billion euros worth. Continuación...