The future direction of interest rates and whether bonds are expensive or cheap may be up for debate, but some analysts are stepping up with their bond picks, and emerging Europe is among the favorites.
"Under a supportive central bank, peripheral European credit remains one of the few areas in the developed credit markets where spread compression remains a possibility," Mohit Mittal and Saumil Parikh, portfolio managers at Pimco, said in a note, adding that it prefers sovereign debt, followed by financial and then nonfinancial credit.
Read More Why low bond yields are all you deserve
The European Central Bank (ECB) earlier this month introduced aggressive easing measures including cutting the deposit rate for banks from zero to minus 0.1 percent and the benchmark interest rate to 0.15 percent from 0.25 percent. It will also offer cheap long-term loans to banks worth up to 400 billion euros, and there may be more easing on the way.