Five Key Themes For 2014
We have identified five key themes which we expect to play out in Sub-Saharan Africa (SSA) in 2014:
Eurobond Issuance: Carpe Diem
Eurobond issuance will continue to draw the spotlight in 2014. With extraordinarily loose monetary policy in developed markets set to keep yields on SSA Eurobonds at artificially low levels through early 2014, governments will be keen to tap the international debt markets. Although we maintain that from a risk-reward perspective yields on African debt are unattractive and much lower than fundamentals can justify, we believe that current market conditions and bullish sentiment will see interest in forthcoming bond issuances remain high. On a related note, we also see potential for further growth within the infrastructure bond space as governments seek new ways to finance critical projects. While debt levels will rise, we expect them to remain manageable and still low by global standards.
|Some Are More Equal Than Others|
|Africa - Total Sovereign Risk Score Out Of 100 And Constituents|