Kenya: Rate cap repeal boosts investor risk appetite

The month of October ended on a high as indications of a post-interest rate cap era improved investor risk appetite. Bank stocks rallied for the second consecutive week, rising by close to 26.00% on average as prospects of increased lending and profitability anchored investor sentiments. Adjustments to the yield curve, as a result of a rate cap … Continue reading Kenya: Rate cap repeal boosts investor risk appetite

Kenya: Prospects of interest rate cap repeal to elevate appeal for lower duration bonds

Investors may enhance their exposure to lower duration bonds as the uncertain interest rate environment portends a big effect on bond       portfolios. Following the President’s recommendation to repeal the law capping interest rates, investors are priming themselves for the         possibility of higher interest rates. Coupled with the government’s bigger debt load, given the under-performance in revenues, … Continue reading Kenya: Prospects of interest rate cap repeal to elevate appeal for lower duration bonds