The Markets

CAIRO (Capital Markets in Africa) – Not all emerging-market debt is losing its allure as U.S. Treasury yields rise. At least not for Morgan Stanley Investment Management’s Michael Kushma. Far from taking a more skeptical view of the asset class, Kushma, who helps oversee $80 billion in debt, says the trick is to seek securities in places where there’s relatively low interest-rate risk. It’s a strategy that leads him to talk enthusiastically of countries that…

CAIRO (Capital Markets in Africa) – Egypt retains its mantle as Africa’s most appealing investment destination, thanks to its expanding economy, high literacy rates, adequate electricity and ready supply of inexpensive labor, according to Charles Robertson, Renaissance Capital’s chief economist. While Egyptian markets have boomed since the country devalued its pound in November 2016 and secured an International Monetary Fund loan, Moscow-based RenCap sees the rally as having some way to run, with a real effective…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s economy is under new management, and Investec’s Chris Freund is among equities investors who are expecting growth to surprise to the upside. President Cyril Ramaphosa, in office since February, is spurring optimism among stock traders who are already noting changes in Africa’s most industrialized market. The new leader has set a goal of attracting $100 billion in investment, overhauled his cabinet and installed new boards at troubled state-owned companies. “People…

LAGOS (Capital Markets in Africa) – Running a cryptocurrency exchange can be enormously profitable — so long as you don’t lose your clients’ assets to hackers. Japan-based Coincheck Inc., which suffered one of the biggest heists in history, earned 53.2 billion yen ($490 million) from April 2017 through January, when the theft occurred, according to its new owner Monex Group Inc. By comparison, Japan Exchange Group, which owns the Tokyo Stock Exchange and Osaka Exchange, earned 66.1…

CAIRO (Capital Markets in Africa) – Egypt is considering shifting away from costly short-term domestic debt towards longer-term borrowing, as falling interest rates provide cheaper options to finance its fiscal deficit, according to the nation’s finance minister. It will increasingly rely on five- to seven-year bonds instead of Treasury bills that have shorter maturities and currently make up the bulk of local-currency borrowing, Amr El-Garhy said in an interview in Washington, where was attending spring…

LAGOS (Capital Markets in Africa) – Angola, whose Eurobonds have outperformed those of all its emerging-market peers this year, is readying a new dollar transaction to take advantage of higher oil prices and a new program with the International Monetary Fund. The OPEC member plans to issue at least $2 billion of debt in international markets next month, Portuguese news agency Lusa reported on April 22, citing Finance Minister Archer Mangueira, who was scheduled to meet…