BlackRock says positive on S.Africa bonds despite political noise

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The BlackRock logo is seen outside of its offices in New York City, U.S. on October 17, 2016. REUTERS/Brendan McDermid

LONDON  – BlackRock remains positive on South African bonds despite signs of tensions within the government, the head of emerging debt at the world’s largest asset manager said on Wednesday, adding that investors would have to “live with” political noise.

South African assets have sold off heavily this week on speculation the country’s finance minister would be removed from his post. Pravin Gordhan was ordered back home from an investor roadshow by President Jacob Zuma on Monday.

But BlackRock’s Sergio Trigo Paz said he remained “long” on South African debt, noting that the central bank has room to cut interest rates.

“There will be noise in South Africa but we will have to live with it,” Trigo Paz told a briefing in London.

(Reporting by Dhara Ranasinghe; writing by Sujata Rao; Editing by Jamie McGeever)

Reuters 

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