The focus of the world is on Brazil for the World Cup but what about investing in the country itself? Saxo's Head of Fixed Income Simon Fasdal looks at the prospects of Brazilian government bonds and says there's real potential - but mainly for investors who buy real-denominated bonds. He explains that if you buy Brazilian government bonds in USD you get a 4.32 percent return, but if you buy them in Brazilian real you get an impressive 12 percent return.

That said, Simon says the Brazilian government bonds have an elevated risk premium because of the exposure to the volatile Brazilian economy, in particular because of the upcoming elections, and thus investors really need to be aware of what they are getting in to. But he adds it's rare to see economies offering such high yields and that makes certain bonds in particular attractive.