Limited outflows if SA junked: BofA

If Moody’s Investors Service cuts South Africa’s credit rating to junk, the bond sell-off could be as little as $1 billion to $1.5 billion because investors have already started positioning for the risk, according to Bank of America Corporation.

This view contrasts with that of the SA Reserve Bank, which expects between $5 billion and $8 billion to leave.

“The downgrade story has manifested in outflows” already, Bank of America’s David Hauner said. – Bloomberg