From Angola to Nigeria: Africa’s growing use of total return swaps sparks concern
AI Summary
African sovereign nations like Nigeria are increasingly using total return swaps amidst elevated Eurobond yields to obtain foreign currency liquidity. This trend raises concerns regarding the complexity and risks associated with these financial instruments in Africa's markets.
As Eurobond yields remain elevated, African sovereigns such as Nigeria are increasingly turning to complex total return swaps to secure foreign-currency liquidity.