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Updated · Bloomberg · Jun 30Kenya, Congo Eurobonds Gain About 2% in June as Brent Crude Falls Below $73
3 articles · Updated · Bloomberg · Jun 30Summary
- Kenya and Democratic Republic of Congo Eurobonds ranked among Africa’s best-performing debt this month, returning 2% and 1.95% in June.
- Brent crude slipped below $73 a barrel after dropping more than a fifth this month, drawing investors back to bonds from oil-importing countries.
- That move is unwinding a wartime trade that had favored debt issued by oil exporters such as Nigeria during the Iran conflict.
- Bloomberg-tracked data show the Kenya and Congo gains were roughly double the average return on emerging-market debt in June.
Insights
As investors favor Congo over Nigeria, is this a new economic order for Africa or just a temporary trade? Is falling oil a lifeline for Kenya and Congo, or a trap if prices suddenly rebound? Can the DRC leverage its critical minerals boom and new investor appeal to finally achieve lasting economic stability?