US$2017 Global Bond: Caution Is Warranted

Ghana's US$2017 global bond is rallying strongly in line with the global trend for emerging market debt, and is currently testing its all-time-high. The instrument has been buoyed by rising risk appetite and an uptick in sentiment towards Sub-Saharan Africa (SSA) in particular. The SSA region is receiving increasing investor attention thanks to the successful staging of the World Cup in South Africa as well as a broad shift in global investment allocations towards emerging markets, which offer a high-growth environment and decent yields, relative to the perceived level of risk. Ghana's US$2017 bond is currently offering a mid yield to maturity of 6.4% - only slightly above the 6.0% offered by Gabon's US$ 2017 global bond.

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