Webinar Replay: COVID-19 – Performance of African local currency bonds versus other asset classes

May 14, 2020 | Global (online)

As part of its series of activities on the impact of the COVID 19 pandemic, Making Finance Work for Africa (MFW4A) hosted a joint webinar with the African Financial Markets Initiative (AFMI) on the performance of the African local currency fixed income asset class.

Date: 14 May 2020 @ 12:00 pm GMT | 8:00 am New York | 3:00 pm Nairobi


The African Local Currency Bond Fund (ALCB Fund), launched by the African Development Bank (AfDB), is a multi-stakeholder initiative which aims to promote local capital market development, access to long-term local currency financing, and to crowd-in domestic institutional investors.

The COVID-19 pandemic has disrupted the economy and financial markets across the globe, and prompted a strong desire among investors for safe and liquid securities. Borrowing through domestic currency bonds has not insulated emerging market economies from the financial shock unleashed by the pandemic. Emerging and frontier markets local currency bond spreads spiked amid sharp currency depreciations and massive capital outflows.

During the one-hour webinar, panellists discussed and contrasted African local currency bonds performance and other asset classes. They also assessed the state of some of the major African economies in these uncertain times, and how governments and financial markets are dealing with the situation. In particular, the discussion focused on the pan-African local currency fixed income asset class covering performance, volatility, liquidity on an absolute basis and relative to global peers.

Speakers:

- Albin Kakou, Senior Investment Officer and AFMI Coordinator, African Development Bank

- Abhimanyu Yadav, Head of Fixed Income and Currency at MCB Investment Management Co. Ltd – Fund Manager of the African Domestic Bond Fund

- Samir Gadio, Head of Africa Fixed Income Strategy, Standard Chartered

For more details on this session’s content, the event recording is available below. The webinar presentation can also be downloaded via this link.