Unlikely Havens Seen in Moscow to Rio as Brexit Hits Markets

Britain’s vote to quit the European Union has flipped perceptions of global political risk on their head.

Brazil’s new government and Russia’s isolation represent a buying opportunity for Europe’s biggest asset manager as political chaos across the continent erodes developed economies’ traditional haven status. Even before the Brexit vote, price swings for bonds in advanced nations had eclipsed those of less-developed peers, exposing investors to greater risk.

“You can certainly make the case that some emerging markets are now safer than parts of the developed world,” said Sergei Strigo, head of emerging-market debt at Amundi Asset Management in London, the continent’s biggest investment firm at $1 trillion under management, which had positioned for a British vote to leave the EU.

 Strigo is considering adding more Russian and Brazilian hard-currency bonds to his portfolio and is overweight on Argentina and Mexico. He’s not alone. While global markets tanked Friday on the referendum results, BNP Paribas Investment Partners loaded up on exposure to Russia, Colombia and South Africa through credit-default swaps.

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