Bond Flight From South Africa Spurs `Amplification’ Warning

Bond Flight From South Africa Spurs `Amplification’ Warning

JOHANNESBURG (Capital Markets in Africa) – Foreign investors’ holdings of South African bonds have dropped to the lowest level in more than a year following a record sell-off since the beginning of May, and a senior Treasury official says there could be worse to come. Non-residents held 38.9 percent of government debt as of June 22, down from as high as 42.8 percent in March, according to Bloomberg’s calculations based on National Treasury data through…

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The Wheel Turns for South African Bonds as Sell-Off Worsens

The Wheel Turns for South African Bonds as Sell-Off Worsens

JOHANNESBURG (Capital Markets in Africa) – South African government bonds handed dollar investors a whopping 13 percent return in the first quarter, the best performance out of 25 major emerging markets. In the second quarter, they’ve lost it all, and then some. Rand-denominated debt has lost 17 percent since the beginning of April, the most among developing nations after Argentina and Turkey, according to data compiled by Bloomberg. That’s partly a result of the rand’s…

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Asia’s Highest Yielder Is Losing Appeal Relative to South Africa

Asia’s Highest Yielder Is Losing Appeal Relative to South Africa

LAGOS (Capital Markets in Africa) – Having the highest inflation-adjusted yield in Asia isn’t enough for emerging-market bond investors any more. That’s the message from Saxo Bank A/S, which says Indonesia is losing its appeal over countries such as South Africa because of better prospects for political stability and reforms. The rupiah slumped to a two-year low this month despite offering the highest inflation-adjusted yield in Asia and after having been upgraded in recent months by ratings…

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South African Bond Traders Have Bigger Fish to Fry Than Inflation

South African Bond Traders Have Bigger Fish to Fry Than Inflation

JOHANNESBURG (Capital Markets in Africa) – South African bonds were little moved by faster-than-forecast inflation data on Wednesday, suggesting traders are holding steady before Finance Minister Malusi Gigaba’s fiscal update next week. The yield on the rand-denominated 10-year government bond was up less than two basis points at 8.76 percent after a report showed annual consumer-price growth accelerated for a second month in September. The move was pale in comparison with Tuesday’s 10 basis-point jump following a surprise…

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Republic of Congo Eurobond Trustee Said to Announce Coupon Payment

Republic of Congo Eurobond Trustee Said to Announce Coupon Payment

BRAZZAVILLE (Capital Markets in Africa) – Delaware Trust, Eurobond trustee for the Republic of Congo, issued statement Aug. 29 that $21 million of overdue principal and interest payments will be transferred to investors soon, according to two people familiar with the matter. People asked not to be named as they were not authorized to speak publicly. The statement said that Commissions Import Export, a contractor claiming it’s owed money from Republic of Congo’s government, has…

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INTO AFRICA August 2017 Edition: Delivering Value via African Capital Markets

INTO AFRICA August 2017 Edition: Delivering Value via African Capital Markets

LAGOS (Capital Markets in Africa) – Welcome to the August edition of INTO AFRICA, the publication with fresh insight into Africa’s emerging markets. This month edition focuses on Capital Markets in Africa and titled: Delivering Values via African Capital Markets. The capital market is one of the key components of the engine of a modern economy, as it mobilises and pools savings from the public and efficiently channels them into business investments. It also helps…

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`Battle-Hardened’ Investors May Need to Go Easy on African Bonds

`Battle-Hardened’ Investors May Need to Go Easy on African Bonds

LAGOS (Capital Markets in Africa) – Such is the demand for African Eurobonds these days that not even army mutinies are scaring investors. That may not be the case for much longer. Investors have become “battle-hardened” in their quest for yield, according to Union Bancaire Privee Ubp SA, with issuance from the continent reaching $12.7 billion in 2017, already a full-year record. Less than a month after soldiers rebelled in Ivory Coast, the West African nation attracted $10…

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