African Selloff Probably Isn't Over Yet: EM Insight

The video discusses the performance of emerging markets in 2018, highlighting Africa's underperformance compared to the previous year. It examines the impact of the emerging market sell-off on the Eurobond market, with African yields rising significantly. The discussion also covers the effects on local debt and currencies, particularly in Nigeria and South Africa, where real yields remain attractive despite market sell-offs. The video concludes by addressing investment challenges in Africa, including political risks and upcoming elections, which deter global investors.

What was the main reason for Africa's underperformance in 2018 compared to the previous year?

• Decrease in commodity prices

• Rise in African yields

• Improved global market conditions

• Increase in global oil prices

Which country was identified as the worst-performing emerging market in terms of Eurobond performance?

• Gabon

• Nigeria

• Angola

• Zambia

What factor has enticed investors to consider local debt in Nigeria and Egypt?

• Low inflation rates

• Political stability

• Decreasing interest rates

• Stable currencies and high yields

What has been the impact of US-China trade tensions on local markets in Nigeria and Egypt?

• Increased foreign investment

• Market sell-offs

• Stable market conditions

• Improved trade relations

What is a significant concern for investors in Nigeria and South Africa?

• Stable political environment

• High inflation rates

• Upcoming elections

• Decreasing commodity prices

How have South African stocks compared to EM stocks in recent years?

• Less expensive on a forward basis

• More expensive on a forward basis

• Not comparable

• Equally priced

What has been the effect of large outflows from the South African bond market?

• Stability in the Rand

• Depreciation of the Rand

• Strengthening of the Rand

• No impact on the Rand