Investec Sees South African Bonds as Resilient in Junk Downgrade
- `Deep pool' of local investors to buy if foreigners sell
- Country able to absorb foreign shocks, money manager says
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South Africa’s corporate bond market is better equipped than other emerging countries to deal with a cut in the nation’s credit rating to below investment grade, said Hendrik du Toit, chief executive officer of Investec Asset Management Ltd.
The country has a relatively small pool of dollar bonds, compared with rand-denominated debt, and a large domestic money management business with the capacity to invest in the assets, Du Toit said in an interview Wednesday at the World Economic Forum on Africa in Kigali, Rwanda’s capital. His company has about $109 billion under management.