The one positive of this, even if some of it is depressing, is that there'll be life on the other side, writes Adriaan Basson.
The yields on South African 10-year bonds have spiked to above 12% - and there's now a record-large gap between SA and US yields.
If 2019 taught us one thing, it’s that a hiccup can occur where it is least expected.
The rand climbed and government bonds gained the most in 20 months after South Africa clung to its last investment-grade credit rating.
The Government Employees Pension Fund, managed by the PIC, holds R54.8bn of Eskom bonds, or 16.8% of all the debt outstanding, more than five times the next-biggest holder.
Foreign ownership of South African government debt is declining, but that’s not necessarily a bad thing.
The BoE is not alone in being alarmed. Australia’s central bank and the Bank of International Settlements have also noted the soaring use of leveraged loans, which now stand at more than $1 trillion.
If all R268bn of guaranteed debt landed on the government’s balance sheet, it could raise SA's debt to GDP towards 70%, not the 53% disclosed by the government for 2017, says Nick Smith-Saville.
Just as Argentina looked poised for a shot at economic recovery, a corruption scandal is roiling the embattled country.
It won’t be a cheap welcome back into international debt markets for Eskom, says a prominent SA asset manager.
The emerging-market sell-off is taking a heavy toll on Africa, with the continent’s bonds and stocks taking a hammering more than those in most other regions.
Markets have been roiled by the coronavirus outbreak that originated in Wuhan, China.
Eskom’s bonds, rated deep junk, are the gift that keeps on giving.
The planned sale of a rhino impact bond is seen by its backers as a test for the creation of a conservation debt market that could be used for everything from protecting species facing extinction to preserving wildlife areas.
China's 'nuclear option' in the trade war is dumping US Treasurys. It just sold $20 billion of them, its largest offloading in more than two years.
At first glance, 2019 might look like a quiet year for distressed-debt investors, judging by the small list of troubled bonds coming due - but the light schedule could be deceptive.
The next bear market in the United States is likely to be caused by a spike in 10-year Treasury yields.
South Africa just had its strongest bond auction since March, a sign investors see value in the country’s debt after a sell-off sparked by Turkey’s currency woes.
Asset managers often disagree, but they agree on one thing: Investors must invest over the long-term.
After nearly three months of unabated selling, foreign investors are making a cautious return to South Africa’s bond market.
Foreign investors’ holdings of South African bonds have dropped to the lowest level in over a year following a record sell-off since the beginning of May, and a senior Treasury official says there could be worse to come.
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