Which bonds are still worth buying? "There's always value in bonds somewhere in the world," said David Zahn, the head of European fixed-income investing at Franklin Templeton, the fund manager. You just need to cast your net as widely as possible. This means looking at different countries and different types of bond. Below we look at where he and other investment professionals think there is still value to be found in bonds. David Zahn, Franklin Templeton Mr Zahn holds no British, American or German government bonds, saying that returns are too low. He prefers countries where yields are higher and debt levels are lower. "Yield-hungry investors need to look beyond gilts if they are going to realise a decent income over inflation," he said. At present levels, I do not believe gilts offer value - if they are less than 10 years from maturity you will actually get a negative real return. But there are opportunities across the globe for better returns in bonds. In Europe, for example, a 10-year Italian bond yields 4.4pc, while a 10-year Polish bond yields 4pc. He added: "When you look at the fundamentals of what I like to call the 'emerged' emerging markets, such as Chile and Poland, you see far healthier economies with lower debt and more potential for growth than their developed market counterparts." Most investment experts recommend "strategic" bond funds in the current uncertain environment, as these funds have the flexibility to switch between different bond types such as government, investment-grade corporate and high-yield ("junk" bonds). But Mr Zahn said some strategic bond funds still lacked the flexibility to invest across the world, tending to concentrate on bonds issued in Britain. Martin Gray, manager of the Miton Strategic Portfolio fund Mr Gray has also sold his gilts, and the American equivalent, in favour of Asian bonds, which he holds via funds run by Franklin Templeton, Pimco and Schroders. He also has holdings in the Old Mutual Global Bond and Jupiter Strategic Bond funds. The Miton Special Situations fund, which Mr Gray also runs, has 13pc in Asian or diversified bond funds and 5pc in strategic bond funds. But he warned: "Some investors are complacent about their bond holdings because they have performed well for the past five years and they think nothing will change. This is often the time to sell. Nicholas Gartside, manager of the JPM Strategic Bond fund We are "on the cusp of a new bond age," Mr Gartside said, which will highlight that "not all bonds are equal." The differences between top and bottom performing bonds will increase, so choosing the right ones will be vital, he said. The days of buying a gilt or corporate bond fund benchmarked to a traditional index are over. Bond investors will need to think in a global, unconstrained way, buying those bonds they like irrespective of sector or geography. With this approach the potential for yield and returns abounds. He picked three types of bond that should do well in the "new bond age," all of which, with careful selection, offered yields of more than 4.5pc. The first is bank debt. "Banks are being forced to pay down existing lending books and to have higher capital buffers," Mr Gartside said. With good security selection skills opportunities abound. He said conditions were also right for high-yield bonds. The key risk with junk bonds is that default rates - the number of bond issuers going bust - increase. But with a gently improving economic backdrop, default rates should not increase materially. Yields of around 6pc more than compensate for the risk of default. His last pick was emerging market debt. He said many emerging countries had had their credit ratings raised, unlike many developed countries, and were managed on conservative economic principles. James Maltin, investment director of Rathbones As is so often the case, the areas of greatest return are those where the investment community perceives the greatest risk. Mr Maltin said. The "safe harbours" of today's bond market - Germany, Britain and America - are "wholly unattractive" from an investment perspective, as they pay negative real yields, he added. Instead, he favours "absolute return bond funds" such as the Ignis Absolute Return Bond fund, which currently yields 5pc and invests in government bonds issued by G7 countries. The fund is insulated from rises in interest rates because it chooses the "duration" of its holdings - the number of years before the bonds are repaid - carefully. Mr Maltin added: "We also like index-linked bonds, as we believe that central bank stimulus will lead to heightened inflation once the capital markets start working normally again. With these bonds, investors will make money if inflation exceeds 3pc. Currency is another factor. We expect the dollar to continue to strengthen against sterling, so we also hold index-linked US dollar bonds. Alan Higgins, chief investment officer of Coutts Coutts generally prefers shares to bonds at the moment, but Mr Higgins said: "An environment of indiscriminate selling usually offers up opportunities. The recent sell-off in bond markets was no exception. The bank favours the high-yield sector, particularly in the US, pointing out that the income these bonds produce has offset falling prices so far this year, meaning that total returns remain positive. It said the outlook for defaults remained "benign." But Mr Higgins added: "We also like the Invesco Perpetual Corporate Bond fund. It invests across the spectrum of UK corporate bonds, primarily investment-grade, including across currencies where attractive opportunities exist to exploit temporary inefficiencies in markets. While the fund does not specifically target yield, it aims to generate an attractive income stream with lower volatility than shares. In the high-yield sector, we like Pimco Global High Yield. The fund targets more liquid, higher quality assets, while Pimco's investment philosophy emphasises the preservation of capital, diversification across industries and companies, and original research. Juliet Schooling Latter, fund analyst at Chelsea Financial Services The economic environment favours shorter-dated corporate bonds at "the crossover point between investment grade and high yield," according to Ms Schooling Latter. She said emerging market debt was likely to struggle as long as the dollar was strong and China was weakening. It's wrong to tarnish all emerging market bonds with the same brush, but on balance I think I'd steer clear for now. Of the developed markets, European and US high yield look the most interesting although both obviously carry higher default risk.