South African Debt Issue: Expensive Funding and Increased Risk

While treasury celebrates the launch of the South Africa’s USD1,5Bn dollar denominated bond, the only ones who have reason to celebrate are international investors, and the banks that arranged the sale. With demand in excess of USD7bn for the bond, both treasury and market participants are lauding the fact that the bond was massively oversubscribed. [...]

2017-10-17T17:09:12+00:00May 20th, 2009|

Monetary policy and the new regime

With the appointment of trade unionist Ebrahim Patel as minister of economic development, and comments from the new finance minister Pravin Gordhan stating that inflation targeting will be debated, the media has been quick to pronounce a leftward shift in economic policy. Similar fears were espoused back in 1998, when Tito Mboweni was appointed Reserve [...]

2017-10-17T17:07:06+00:00March 15th, 2009|