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Why Russian bonds could heat up your portfolio
Russia may be cold this time of the year but it’s certainly hot when it comes to investing in bonds! So says Saxo Bank’s Head of Fixed Income, Simon Fasdal; he argues that Russian bonds look attractive at the moment even though most emerging market economies lack growth as the country's fundamentals look better than for other larger emerging markets such as Brazil.
Simon suggests in particular to look at Russia’s corporate bonds. He is seeing a more globalised Russian banking system and believes that progress will continue next year and we will see their levels getting more attractive than their European peers.
Simon warns investors they should bear in mind that Russia is situated between emerging and developed markets; the downside to that as an investor is that you are lacking growth but on the plus side, there’s lots of potential.
He warns investors would be entering a market with political risks but the risk premium would be higher.
01:27 minutes
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