Bond investors’ gloom about SA at levels last seen during volatile Zuma days
SA bonds are significantly underperforming emerging market peers, with analysts pointing the finger at a lack of progress regarding Eskom's debt
12 August 2019 - 17:49
Bond investors have not been this nervous about SA since Jacob Zuma was president.
The extra yield that investors get for holding SA bonds maturing in a decade instead of US treasuries with similar maturity dates was at 748 basis points, or 7.48 percentage points, on Monday, the most since late August 2016, when speculation about the impending arrest of the then finance minister, Pravin Gordhan spooked investors and sparked a market sell-off of SA assets.
BL Premium
This article is reserved for our subscribers.
A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.
Already subscribed? Simply sign in below.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now