The Markets

ACCRA (Capital Markets in Africa) – Fiscal deficits are no longer such a worry for emerging-market investors, according to HSBC Holdings Plc. In a world of low-interest rates and quantitative easing, governments aren’t being punished for running bigger budget deficits and pushing up debt, said David Bloom, HSBC’s London-based global head of foreign-exchange strategy. Instead, investors are continuing to snap up emerging-market bonds as they search for higher yields. A case in point is South…

LAGOS (Capital Markets in Africa) – The Nigerian Stock Exchange started lending and borrowing of shares as it seeks to reignite liquidity in Africa’s third-biggest bourse by listings. A combined 20.8 million shares are available, with Guaranty Trust Bank Plc, the nation’s biggest lender, providing 8.4 million, according to a statement on the Lagos-based NSE’s website. Nigeria’s Securities and Exchange Commission last year announced plans for securities lending, short-selling and hedging to attract inflows. Trading volumes on the…

ACCRA (Capital Markets in Africa) – Ghana named five banks including JPMorgan Chase & Co. to market a sale of as much as $3 billion in Eurobonds by the first week of February, according to a person familiar with the matter. The four other main advisers are Bank of America Merrill Lynch, Morgan Stanley, Standard Chartered Plc and Standard Bank Group Ltd., said the person, who asked not to be identified because they’re not authorized…

LAGOS (Capital Markets in Africa) – The quick recovery in emerging-market bonds this month suggests investors aren’t concerned about a further escalation in Middle East tensions. But those worried about a renewal of hostilities should seek out Russian and Thai exposure and avoid securities from Turkey and South Africa, according to a Bloomberg analysis. A study of the relationship between outsized surges in crude prices and moves in 11 emerging market five-year bond spreads over…

LONDON (Capital Markets in Africa): The second-biggest diamond in history will be cut, polished and turned into a collection of Louis Vuitton jewelry. Lucara Diamond Corp., which found the 1,758-carat Sewelo diamond at its Botswana mine last year, said it’s struck a deal with the luxury brand and Antwerp diamond manufacturer HB Company. It’s unclear how valuable the polished diamonds will be though, as Lucara previously said the Sewelo wasn’t a type of diamond that yields top…

LONDON (Capital Markets in Africa) – Lekoil Ltd. sank to a record low in London trading after falling victim to an alleged scam, leaving the future of a Nigerian oil project at risk. A loan deal struck earlier this month is no longer valid, the company said, alleging that individuals claiming to be from the Qatar Investment Authority were in fact fraudsters. Lekoil now has until February to raise enough money to cover its drilling costs…

JOHANNESBURG (Capital Markets in Africa) – Ever find yourself nodding along as a colleague delivers their latest political rant? For fund managers, that could be a problem. Portfolio management teams with similar political views trail those with different ideologies by 0.4% in benchmark-adjusted returns per year, according to new academic research based on U.S. political contributions data. Diversity is also linked to greater deviations from the benchmark, suggesting stock pickers in disagreement may be better at using…