What to do to get us out of the mess

28 March 2021 - 00:00 By Bonang Mohale

With the prolonged Covid-19 recession continuing to bring uncertainty to credit markets, risk appetite among South African investors continues to be low, with some demanding a much higher risk premium for low-rated bonds. Supply has been very muted in 2020, as companies do not have a lot of funding needs for investments in a recessionary environment and some weaker companies cannot refinance in public markets.

The rally in mining commodities has marginally improved the macroeconomic situation via improved terms of trade. With the current constitutional, political, economic, health, unemployment and gender-based violence crises, SA is in a state of war, if not worse...

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