Nigeria debt

By Peter Leger, Coronation Fund Managers

So you thought a six-month break on a desert island looked appealing and spent long hours in silent meditation, reflecting on self-actualisation, harmony and humanity’s ceaseless race to consume the planet. Now you’ve just made the return journey to find that the oil price collapsed from over $110/barrel to less than $50. Peak theorists having turned into piqued theorists. You didn’t see that coming. And, frankly, neither did we. Nor did we expect to see the Swiss franc jump 28 per cent in a single day – as it did recently.

The lesson being that extreme volatility has to be an assumption when building portfolios, and doubly so when investing in frontier markets, where volatility is often amplified. Read more

Nigeria has overtaken South Africa to become Africa’s largest economy after the government released updated figures that raised the country’s gross domestic product by 89 per cent to $509bn.

The re-calculation rightly put most Nigerian officials in celebratory mood. But Ngozi Okonjo-Iweala, the country’s finance minister (pictured), offered also a cautious note: the new figures do highlight some acute problems. Read more

The EM debt rally is pushing some countries into new territory. Nigeria’s public finances have received a boost on Wednesday with its borrowing costs at auction hitting record lows.

N30bn ($190m) of 10 year government bonds were sold with an 11.9 per cent yield, with investor inflows pushing the naira higher to build upon the strong gains made by the west African oil exporter’s currency this year. Read more