In what is considered a relatively new but growing asset class, locally denominated fixed income originating from African nations is gaining interest with fixed income managers.
“Until October, for the past two years, we were not overly excited about sub-Saharan Africa. But now valuations have become very compelling,” said Didier Lambert, London-based executive director and lead portfolio manager for local currency emerging markets debt at J.P. Morgan Asset Management (JPM).
JPMAM managed $1.85 billion for institutional clients in local currency emerging markets bonds across all markets as of Sept. 30, up $1.1 billion from Dec. 31, according to data from eVestment Alliance LLC, Marietta, Ga.
As an indication of the general momentum in the space, the article cites Nigeria locally denominated fixed income which has seen its yields fall more than 400 bps since August of this year alone.
Written by Jack S.