Victor Mphaphuli, head of fixed income at Stanlib. Picture: SUPPLIED
Victor Mphaphuli, head of fixed income at Stanlib. Picture: SUPPLIED

In this edition of Business Day Spotlight, we talk about the growth of the bond market during the pandemic.

Our host Mudiwa Gavaza is joined by Victor Mphaphuli, the head of Stanlib’s fixed-income division.

With close to R600bn in assets under management, Stanlib is one of SA’s largest asset managers.

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The discussion begins with Mphaphuli explaining his division’s place at Stanlib, and the different assets classes, such as equities, that are available to its clients.

Mudiwa Gavaza. Picture: DOROTHY KGOSI.
Mudiwa Gavaza. Picture: DOROTHY KGOSI.

The fixed-income specialist takes time to explain how the bond market works; the factors that determines prices and yields; as well as the real world economic considerations that affect the market.

He also differentiates the bond market to that of equities, saying government bonds, specifically, tend to be less risky overall given their contractual nature and relatively low volatility compared to other types of investments, such as company shares.

Mphaphuli says the bond market was negatively affected by Covid-19, experiencing what he describes as a “wobble” last year, but says the market has since recovered.

The discussion focuses on the role of Stanlib’s fixed-income unit; how the bond market works; the performance of fixed income relative to other assets classes; the impact of Covid-19 on the bond market; the risks and opportunities associated with bonds; and an outlook for the market.

Mphaphuli also takes time to highlight the growth of the corporate bond market and the impact of ratings agencies.

Engage on Twitter at #BDSpotlight

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 Business Day Spotlight is a MultimediaLIVE production.

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