It’s close to impossible not to become depressed at the current wave of negativity pervading SA politics, economics and listed equities. However, there might be a bright spot in the domestic bond market and at a recent PSG Asset Management seminar, investment analyst John Gilchrist gives an argument for the local fixed-income asset class.

Gilchrist comments that while the situation in SA is poor and deteriorating, it is nevertheless a lot better than most of its emerging-market peers. And our domestic bonds are currently offering the best real yields on a risk adjusted basis, being the highest yielding bonds in the World Government Bond Index. However, the unfortunate thing is that investors are not piling into them.

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, Morningstar 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.