'Battle-Hardened' Investors May Need to Go Easy on African Bonds
- Sovereign issuance hits record as hunt for yield persists
- The market may turn as Fed tightens, Standard Bank warns
This article is for subscribers only.
Such is the demand for African Eurobonds these days that not even army mutinies are scaring investors. That may not be the case for much longer.
Investors have become “battle-hardened” in their quest for yield, according to Union Bancaire Privee Ubp SA, with issuance from the continent reaching $12.7 billion in 2017, already a full-year record. Less than a month after soldiers rebelled in Ivory Coast, the West African nation attracted $10 billion of orders in a sale of $2 billion of securities on June 8, while Egypt and Senegal drew around $20 billion between them for deals in May.