Founder and Principal Advisor at Ambassador Advisory, Refilwe Moloto says despite two surprise downgrades and the fall in the value of South African bonds and shares investors may still take a risk on junk bonds.
She explains why and what this means.
Two surprise downgrades kind of force you toward the appropriate price, you can always get debt, you can always get a loan, whether you are prime plus or prime minus is the question and I think that at these kind of rates heading toward 10%, the South African bonds look a lot more attractive.— Refilwe Moloto, Founder & Principal Advisor at Ambassador Advisory
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This article first appeared on CapeTalk : Refilwe Moloto gives an update on the impact of junk status 10 days later