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Prof Johannes W. Fedderke on the South African – US sovereign bond spread and its association with macroeconomic variables

For the slides, click here.

In this podcast, Prof. Johannes W. Fedderke, the Director of ERSA speaks to our host, Margaux G about his research on the South African – US sovereign bond spread. The cost that the South African government faces when borrowing in open markets is high compared to safe markets such as the US, despite being low by South African standards. In his research, Prof. Fedderke looks into what drives this high yield spread and considers macroeconomic fundamentals such as economic growth, monetary and fiscal policy measures; the local asset market and foreign exchange conditions and explains to what extend the things that matter, matter. With insights into the welfare implications for South Africa’s fiscal and monetary policy going forward, especially after the large Covid-19 fiscal stimulus package, this podcast is really worth listening to.


The beat used in this production, called ‘Resolutions’, is royalty free and can be found at and the photo is by M. B. M. and can be found on Unsplash.