Barclays Recommends Shift to Nigeria's Shorter-Dollar Bonds

Barclays has advised global investors to shift their exposure from Nigeria's longer-dated sovereign dollar bonds to shorter-dated issues, noting that the mid-section of the yield curve now offers more attractive returns.

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In a Bloomberg-monitored note led by analyst Andreas Kolbe, the UK investment bank maintained its overweight rating on Nigerian hard-currency bonds but said the country's yield curve is "too flat" compared to peer emerging markets. Kolbe urged investors to rotate out of the 2049 bonds into the 2033 maturities, pointing to a 25-basis point flattening in the Z-spread this year alone.