Tag: World Government Bond Index

JSE CEO on Moody’s downgrade & COVID-19 impact

The JSE is expected to see massive capital outflows from the bond market when South Africa gets kicked out the World Government Bond Index because of its junk status rating. But CEO Leila Fourie says the net market fallout may be limited by active fund managers picking up the slack from passive funds that dump our non-investment grade bonds. JSE Group CEO Leila Fourie joins CNBC Africa for more.

Moody’s downgrades SA to junk

The action will result in South Africa's expulsion from the World Government Bond Index (WGBI), as a consequence those funds tracking this index as a benchmark will become forced sellers.
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