The investment outlook is promising, albeit with heightened volatility and liquidity challenges compared to Egypt. Despite this, the opportunity remains enticing.
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Looking ahead, Nigeria’s debt management office is considering issuing a significant two-to-three billion-Euro bond, alongside potential funding from the World Bank, aiming to address concerns over pent-up domestic demand for dollars.
Broad Reach, a $1.5 billion hedge fund, is banking on currency stabilization, interest rate adjustments, and external financing to mitigate volatility in targeted countries.
Their strategy diverges from past practices, focusing on high coupon rates to offset potential bond price declines.
Last year, the fund generated a 14% return through its emerging market credit and rates positions, with a 12% increase in the first quarter.
Bradley Wickens, the fund’s London-based founder, emphasizes the long-awaited opportunities presented by these countries, formerly distressed credits.
Wickens encourages substantial investment in these trades, urging confidence in their potential.
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