Fixed Income Chart Book: November 2017

Despite credit ratings threats and political uncertainty, local bonds and the rand are faring well

Following a disappointing Medium Term Budget Policy Statement (MTBPS) in October, fears of more credit ratings downgrades increased and were priced into the market. As a result, the better-than-expected outcome – with only S&P downgrading South Africa to junk status and Moody’s postponing their review until next year – didn’t have the anticipated devastating effect on the market.