African Debt Offers Some Respite as Bond Rout Sweeps Globe

Sub-Saharan Africa is weathering the global bond tempest better than most.

Seven of nine sub-Saharan African nations have outperformed the Bloomberg Emerging-Market Sovereign Bond Index since April 15, when a gauge tracking euro-area bonds reached a record high before the selloff wiped more than $400 billion off the value of global fixed-income markets.

Dollar securities from the continent lost 1.9 percent in the period, compared with a 3.1 percent drop for emerging-market debt, 6 percent for euro-area bonds and 3 percent for U.S. Treasuries.

The slump started as investors balked at record-low yields from Asia to Europe amid speculation the Federal Reserve is preparing to raise interest rates.

While African debt hasn’t entirely escaped the rout, yields are sufficiently alluring to entice investors tempted by the the continent’s growth prospects.

Read more: African Debt Offers Some Respite as Bond Rout Sweeps Globe – Bloomberg Business

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