Sovereign Analysis /
Zambia

Zambia: Local debt attractive but eurobonds are stretched

  • Since the election the ZMW has rallied by 20%, the 2024 eurobond by 19%, and the 5yr government bond by 23%

  • Election has ushered in new era for economy, but eurobond recovery values likely to be below current prices; retain Sell

  • Real yields near zero but positive BOP dynamics and high yields make local debt attractive; initiate Buy on 5yr Treasury

Zambia: Local debt attractive but eurobonds are stretched
Patrick Curran
Tellimer Research
10 September 2021
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