AGR Africa Bond Index

EXECUTIVE SUMMARY

COVID-19 crisis : a growth opportunity for the EUROBONDS market.

Like previous crises, the Covid-19 pandemic has not been completely disadvantageous to the global economy. Indeed, the real economic and financial spheres have experienced various evolutions :

• The real global economy has experienced a marked slowdown, or even complete shutdowns, alongside the phases of lockdown put in place to cope with the virus spread. Given the uncertainty of the health situation in the world, the recovery will take time ;
• The financial world, for its part, has experienced a significant improvement in activity. The dual Supply/Demand shock required the mobilization of new resources to meet needs from both public and private operators. Moreover, financial markets¡¦ volumes have been marked by unprecedented volatility.

In this context, the primary market for Eurobond issues, already expanding before the Covid-19 crisis, accelerates its growth.
It should be noted that the context is favourable. This is evidenced by the abundance of liquidity fuelled by "sizable" stimulus packages and the search of return given "insufficient" traditional offered yields.

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