Eurobond issuance from sub-Saharan Africa is still dwarfed by that from elsewhere in the world. But more and more African sovereigns are tapping the market as investors clamour for exposure to the rapidly growing region, where local bond markets are also developing quickly.
Rising risk appetite: debt capital markets
A few short years ago, securitisation was blamed for triggering the financial crisis and was seen as the root of all evil. However, there are now signs of change, with issuers slowly beginning to reconsider the market as investor appetite returns.
Although foreign banks may be reining in finance for their subsidiaries in central and eastern Europe, any transition to local currency bond financing looks likely to be gradual.
Improved risk appetite allowed peripheral sovereigns and banks, together with high yield corporates at the lower end of the credit spectrum, to reaccess the market at the start of 2013, as investors seek new frontiers for higher yield.