Dubious about SA’s GNU? The bond market isn’t: Matthew A. Winkler

South Africa's bond market soared following the May general election, which saw the African National Congress lose its parliamentary majority for the first time since apartheid ended. Rand-denominated debt securities led global returns, yielding a 17% total return in four-and-a-half months. Investors anticipated a coalition government with the pro-business Democratic Alliance, leading to improved economic outlooks and stabilized currency. This historic turnaround highlights investor confidence in South Africa's evolving political landscape.

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By Matthew A. Winkler

Leave it to the bond market to prove democracy is a capitalist tool. Nowhere is that truer than in South Africa, where rand-denominated debt securities are No. 1 in the world after the May general election ousted the African National Congress as the parliamentary majority for the first time since apartheid ended 30 years ago.

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