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Bond market turns sour on African debt

Image Credit: Wealth Cycles

Soft prices for commodities, crimped revenues and slowing economic growth have all combined to sap investors’ appetite for African bonds. Ghana’s Eurobond sale earlier this month made the country only the fourth to offer yields in excess of 10%.  According to Bloomberg data, average sub-Saharan African dollar yields soared by almost 150 basis to 7.21 percent between the end of April and Oct. 22, while rates on emerging market debt have barely moved. At the same time, issuance has fallen from 2014’s highs as currencies depreciate and foreign debt becomes more expensive to pay off.

Read more at Bloomberg…

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