🔒 UK corporate bond selloff is one for the books – with insight from The Wall Street Journal
UK corporate bonds are being hit particularly hard by a toxic mix of political turmoil, high inflation and soaring interest rates.
UK corporate bonds are being hit particularly hard by a toxic mix of political turmoil, high inflation and soaring interest rates.
“What history shows is that an inventive corner of the financial world can turn into a mania that attracts swindlers and wipes out investors.”
‘Some investors are betting prices will surge over a long period, but history suggests the conditions aren’t right’, says The Wall Street Journal.
The only way out of this mess is a smaller public sector and larger private investment to generate growth and hence, tax revenue.
Magnus Heystek, a former journalist and author of popular personal finance books, has crunched numbers on government debt to make it clear exactly how big the problems are for South Africa.
The world will soon get the opportunity to see that side of Christine Lagarde, but for the moment, bond traders seem to have tagged her as a push-over.
Finance Minister Pravin Gordhan presented an optimistic vision for the future despite warning that the National Treasury has to be careful about budget allocations going forward and will have to work with less money for government to play with.
Historically, interest-rate increases from the Federal Reserve have been buy signals for emerging-market assets. This time looks different.
A team from the International Monetary Fund will arrive in Zambia on Wednesday to discuss “challenges” facing the country, buffeted by the kwacha’s record slump.
With no holds barred, as always. Magnus Heystek is now fretting about his homeland going bankrupt, a theme equally well articulated by RW Johnson in his masterpiece, How Long Will SA Survive?