South Africa - Institutional
Articles by
Nishan Maharaj
Nishan is Head of Fixed Interest at Coronation and a portfolio manager across all fixed interest strategies. He joined Coronation in 2012 has 22 years' investment experience.
"The Fed’s actions reverberate across every corner of the global financial system."— Ben Bernanke, Former Chairman of the Federal Reserve
Global bond rout puts local bonds under pressure amidst a deteriorating fundamental backdrop.
Mapping the way forward.
No margin for error
Hope must make way for action.
SA bonds continue to hold their worth for investors
Central bank action has had a profound effect on risk sentiment, we take a look at how global bond markets have responded.
While economic recovery challenges still abound, the likelihood of South Africa tumbling into a debt trap within the next five years has, thankfully, diminished.
But SAGBs might still fare better than expected
Bloated merchant acquirers face disruption in the Brazilian market spac
“When the world is running down, you make the best of what’s still around.” – Musician and actor, Gordon Sumner (aka Sting)
South African government bonds remain attractive despite global shocks
“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese proverb
But depressed growth and further Eskom support weigh heavily on government
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” – Shelby M.C. Davis
"Speculation … allows you to put your emotions first, whereas investment gets emotions out of the picture.” – John C. Bogle
But South African bonds still offer a bulwark against global policy normalisation
But after riding the wave of optimism, we are now cautious of South African bonds at current levels
Renewed optimism and contained inflation could benefit government bonds
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