The yield on the South African 10 Year Government Bond is 10.870%.
The bond spread between 10 and 2 years is 368 basis points.
Long-Term vs. Short-Term Maturities: Normal Convexity
The central bank rate is at 6.25%. (last modification in September 2022).
According to Standard & Poor’s, South Africa’s credit rating is BB-.
The current 5-Year Credit Default Swap quotation is 313.76 with a 5.23% indicated probability of default.
When interest rates rise, what happens?
Rising interest rates often increase the cost of all debt while increasing income for savers. Stocks, bonds, and real estate may all lose value as interest rates rise. You can take defensive measures to help prepare for difficult economic times while also increasing your overall financial situation.
Who stands to gain from increased interest rates?
Higher interest rates assist financials by increasing profit margins. Brokerages frequently see an increase in trading activity when the economy improves and more interest income when interest rates rise. When the economy recovers and interest rates rise, industrials, consumer names, and retailers can all outperform.
