The ECB’s QE programme is driving bond yields down to all-time lows in most of Europe. So where can investors with an appetite for risk go hunting for the big returns? Brazil and Russia may be two choice destinations, according to Saxo Bank’s Simon Fasdal.

Commodity prices, political uncertainty and the prospect of the US Federal Reserve hiking interest rates are all factors driving up Brazilian bond yields. This makes them an attractive asset for investors to diversify part of their portfolio into, says Simon Fasdal, who is Head of Fixed Income Trading.

Russia likewise is a victim of low oil prices. In addition to that, Russia continues to be locked in a face-off with the West over Ukraine and the Russian economy is in recession. This is driving up Russian bond yields to a level, where they become “extremely” attractive for investors, says Simon Fasdal.

As markets expect relations between Russia and the West to be strained for the rest of year, any improvement in relations in the short-term may very well trigger a rally in Russian assets, he adds.