Africa’s Dollar Debt Outperforms on Haven Bid Amid Ukraine War
- Continent seen more stable than some peers amid war, sanctions
- Rising commodity prices add to appeal of sovereign issuers
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African hard-currency sovereign debt, all of it rated junk, is finding buyers as investors look to shield their cash from the fallout of the war in Ukraine.
Of the nine developing nations which have seen their debt gain amid the risk-off mood, four are countries in Africa which are isolated from the conflict both geographically and because they export some of the commodities that have surged as a result of it. South Africa -- rated three steps below investment grade at S&P Global Ratings -- is leading the pack.