Rand Merchant Bank (RMB): African Risk is not Fairly Priced - Governments Should Take Advantage (By Miranda Abraham)
Banks do this knowing that they will also be able to persuade other relationship banks to join the deal as well.
- Banks do this knowing that they will also be able to persuade other relationship banks to join the deal as well.
- Difficulties in assessing risk: It can be difficult to assess the credit risk of African borrowers.
- As a result of these factors, African risk is often not being priced fairly.
- African banks and investors are desperate for assets and are very comfortable assessing and understanding sub investment grade African risk.