JP Morgan was touting Nigeria’s local debt as one of its top trades in frontier markets just a week ago. Now, it’s pulling the plug, at a loss.
In a striking reversal, the American banking giant is advising investors to exit Nigerian T-bills and OMO bills, citing a worsening global backdrop, plummeting oil prices, and rising fears of foreign capital flight.
In a striking reversal, the American banking giant is advising investors to exit Nigerian T-bills and OMO bills, citing a worsening global backdrop, plummeting oil prices, and rising fears of foreign capital flight.
It closed its latest trade with an FX-adjusted loss and warned that if oil remained below $60 per barrel, Nigeria’s fragile current account surplus could flip back into deficit.
“Alth