Something about the SA bond market makes no sense at all
Why are investors shying away from the juicy yields offered on SA government bonds?
It is close to impossible not to become depressed at the wave of negativity pervading SA politics, economics and listed equities. However, there might be a bright spot – the domestic bond market.
At a recent PSG Asset Management seminar, investment analyst John Gilchrist argued in favour of the local fixed income asset class.
While the situation in SA is poor and deteriorating, Gilchrist said it is nevertheless a lot better than most of its emerging market peers. And SA bonds offer the best real yields on a risk adjusted basis, being the highest yielding bonds in the World Government Bond Index...