Junk status not major issue for BRICS traders, who prefer risk

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South Africa's downgrade on Monday after the nation's finance minister was fired means three of the five BRICS nations now have junk credit assessments at S&P Global Ratings. Bloomberg Gladfly’s Mark Gilbert explains the impact this is having in the markets.

For dollar-based investors betting on the group's stocks and bonds, the history of this decade suggests that junk status matters less - much less - than hedging the currency risk accompanying those investments.

Jim O'Neill, the then chairperson of Goldman Sachs Asset Management, coined the term in his 2001 research note "Building Better Global Economic BRICs."

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