On The Money
STUART THEOBALD: Bond market points to huge Eskom turnaround
The utility's performance since the current board took control is winning over sceptics
15 January 2025 - 05:00
The bond market is pricing Eskom risk at its best level yet. At least that is what we must conclude from the relative yield of Eskom’s guaranteed bonds vs nonguaranteed bonds.
The guaranteed bonds have the full government balance sheet behind them, while the nonguaranteed ones have recourse only to Eskom’s balance sheet. Bloomberg data shows the difference between the two yields has fallen to just 37 basis points, from post-Covid highs of more than 450 basis points in mid-2022. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.