Experts have called Russian bonds “safe haven” in conditions of Brexit


As stated in an interview with Bloomberg, the head of Fund Manager Amundi Asset Management in the currencies of developing countries Sergey Strigo, the Fund seeks to increase investments in dollar-denominated bonds of Russia and Brazil as well as Argentina and Mexico. The new government in Brazil and the isolation of Russia can open the opportunity for investment in financial instruments in these countries, he said. In the management of the London Amundi Asset Management, which is considering increasing investments in Russian bonds is now $1 trillion, making it the largest Fund Manager in Europe.

“You can be sure that markets of some developing countries are now more secure than markets in the developed countries” — said Strigo.

According to the head of the research division of the Fund Ashmore Group, Jan Dehn, imposed by Western countries sanctions actually helped Russia. “Russia is actually forced to rely on European and American banks, so it was relatively isolated,” he says.

Managing research unit ROSBANK Yuri Tulinov considers that “in a period of political uncertainty it is better to stay away from European assets, look to the developing markets, where Russia and the ruble look quite attractive”. Earlier, on 27 June, Societe Generale analysts also talked about the ruble-denominated Federal loan bonds as “havens of security” after Brexit.

Bloomberg notes that the yield 0.93 percent after ten years, you can expect bought the British bond investors do not correspond to political risk (for comparison, yields on similar securities of Russia from 8.5%).

The level of volatility in the stock markets of UK, Europe and the United States after the decision on Brexit exceed the beginning of the year, while the stock markets of Brazil, India, Russia and China responded to the referendum with restraint. In this regard, emerging markets look attractive for investors. Over the past week, inflows into investment funds specializing in investments in emerging markets totaled $1.75 billion — the highest in three months, says Bloomberg.