South Africa slam dunks $2bn, but bounces four points

The Republic of South Africa printed a well oversubscribed $2bn global bond on Monday, although bankers on and away from the deal disagreed on the new issue premium paid. The initial secondary market performance was stable — arguing in favour of the leads’ strategy. But in less than 48 hours the bonds rose four cash points and bids for South African corporations and financials also improved, which the bookrunners struggled to explain.