Research firm warns of rising equities risk premiums ahead of 2024 elections
Capital Economics says investors are underestimating the prospects for SA’s fiscal position deteriorating after the elections
17 September 2023 - 19:39
London-based economic research firm Capital Economics said investors are underestimating the possibility of SA’s public finances deteriorating further after 2024’s elections, causing increased risk premiums of the country’s equity market, with weakness in the Chinese economy another headwind.
Thomas Mathews, senior markets economist at Capital Economics, said growing concerns about the direction of SA’s public finances have caused the bond yield curve to steepen as risk premiums have risen, a trend that may continue as the elections approach...
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