Tier one lender Standard Chartered Bank has predicted a promising local and global bond market supported by stable micro economics in US and China.
Speaking during an investment forum in Nairobi yesterday, Standard Chartered Bank chief investment strategist Steve Brice said bonds in Kenya have maintained above 10 percent yield for the past five years, compared to other forms of investments that have been fluctuating.
Both the local and global bond market has shown stability and we expect this to continue throughout the year. Yields on local bonds of above 10 years are above 10 percent and we expect a yield of 2.5 to three percent similar bonds in US. China is even more stable,’’ Brice said.
He dismissed recession fears in US, saying yield curves on bonds are not indicating
Recession in US has a negative effect on global yield curve. According to our forecast, US are not signalling a recession for now. We attach a 30 per cent probability to a recession in 2019,’’ Brice said.
The investment expert hovered cautioned against investments in equity market, citing frequent regular volatility in the sector.
Equity market, especially stocks is experiencing some volatility. In Kenya, the local bourse shed 18 per cent last year. The bear run was felt in other markets across the globe too,’’ Brice said.
During the forum, Standard Chartered Bank Kenya announces a new mortgage offer that guarantees customers 2.5 per cent fixed margin rate throughout its life circle.
This means, the mortgage will be issued at an effective rate of 11.5 percent with no legal and valuation fee.
