It's a bloodbath | This week could see R100 billion flow out of South Africa because of the “junk” status of the country’s debt, with the rand expected to weaken again and analysts aren't ruling out further downgrades.
This week could see R100 billion flow out of South Africa because of the “junk” status of the country’s debt.
Various institutional investors such as pension funds, exchange-traded funds and funds that follow specific indices are not allowed to invest in bonds that are below investment grade Many people think investors started dropping the bonds since the Moody’s announcement on March 27, but, according to Herman, these have really been discretionary investors and hedge funds – money that flows quickly in and out – who got rid of all high-risk assets.
In the six months between the announcement that South African bonds would become part of the WGBI and the bonds finally being taken up, investors increased their exposure to South African government bonds very gradually.Mexico looks like the next country that will drop out of the WGBI. Wapenaar is of the opinion that the focus will now shift to Mexico and Israel, and South Africa will be forgotten.
S&P said the Covid-19 crisis had curtailed South Africa’s growth prospects as a result of the long lockdown, poorer than expected external demand and strict credit requirements.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SA lockdown: Cele urges SA to adhere to Level 4 regulationsPolice Minister Bheki Cele visited coronavirus-lockdown joint operations centres in Gauteng.
Read more »
Reversal is easy, Cele warns after SA ‘misbehaves’ on level 4He added people's actions currently suggested 'we can forget about level 3' and did not 'deserve' the relaxation of restrictions.
Read more »
SA needs 'extraordinary effort' to survive Covid-19 pandemic: Cyril RamaphosaRamaphosa said it was now clear that the world will experience a substantial economic contraction and, in the immediate future, a significant rise in joblessness.
Read more »
SA needs real structural reform, not more jurists and philosophersSouth Africans need to trust themselves rather than endlessly looking for ‘leaders’; politicians should be handled with suspicion and scepticism, writes Martin van Staden
Read more »
Ninety SA athletes receive government relief for coronavirus impactThe Department of Sport has confirmed that over 90 athletes from a variety of sporting codes who were impacted by the outbreak of the coronavirus have received funding from the R150 million relief fund.
Read more »
Ninety SA athletes receive government relief for coronavirus impactThe Department of Sport has confirmed that over 90 athletes from a variety of sporting codes who were impacted by the outbreak of the coronavirus have received funding from the R150 million relief fund.
Read more »