DEBT CAPITAL MARKETS AS A FUNDING SOURCE FOR LISTED PROPERTY FUNDS IN SOUTH AFRICA

This chapter documents the use of debt capital by sovereign wealth funds (SWFs)—a growing and under-researched phenomenon. Three reasons are given for this. First: debt can help SWFs reach their target portfolio size. (Some do not receive regular inflows from their governments to increase their assets under management (AUM). Second: the development of capital markets is a key objective for most of the countries that have created an SWF, and debt may be especially useful for the development of the bond market. SWF bonds are quasi-governmental securities that can be used as collateral and create a reference yield curve. Third: the use of debt capital is particularly appropriate for portfolio SWFs investing in concentrated portfolios of selected companies for strategic and financial reasons. SWFs are more likely to use debt when they are non-commodity-based, come from countries with relatively less developed bond markets, and have a strategic investment style.

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Causes and Consequences of the Korean Financial Crisis

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091500000029 ◽

2000 ◽

Vol 03 (01) ◽

pp. 1-26 ◽

Cited By ~ 6

Author(s):

Dosoung Choi ◽

Frank C. Jen ◽

H. Han Shin

Keyword(s):

Corporate Governance ◽

Financial Crisis ◽

Capital Markets ◽

Business Sector ◽

External Shocks ◽

Business Risk ◽

Short Term ◽

The Past ◽

Debt Capital

During the past decade, the profitability of Korean firms has declined significantly while their business risk has risen substantially. The deteriorating condition was largely due to excessive investments in manufacturing capacity that were financed mainly with short-term debt capital. The measures to restructure the system are summarized in two major thrusts: one, to reform corporate governance so that the business sector becomes more transparent and more value-enhancing; and two, to help develop long-term capital markets so that the domestic financial system becomes less vulnerable to external shocks.

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Vermont, Christopher John, (born 16 Dec. 1959), Chief Executive Officer, GuarantCo (formerly Head, Debt Capital Markets, then Head of GuarantCo), Frontier Markets Fund Managers, since 2007

10.1093/ww/9780199540884.013.u255845 ◽

2012 ◽

Keyword(s):

Chief Executive Officer ◽

Capital Markets ◽

Chief Executive ◽

Fund Managers ◽

Debt Capital

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Securities and Capital Markets Regulation in South Africa

Brill Research Perspectives in International Banking and Securities Law ◽

10.1163/24056936-12340007 ◽

2019 ◽

Vol 3 (1) ◽

pp. 1-99

Author(s):

C. King Chanetsa

Keyword(s):

South Africa ◽

Capital Markets ◽

Value Chain ◽

Global Financial Crisis ◽

International Standards ◽

Securities Regulation ◽

Reform Process ◽

Reform Agenda ◽

The World ◽

The Global Financial Crisis

AbstractAn effective securities and capital markets industry has existed in South Africa for over 120 years. The regulatory authorities have been alive to globally competitive pressures for inward investment and have endeavoured to implement a conducive environment therefore in compliance with international standards. As recently as 2015, South Africa was considered the best regulator of securities in the world. The effects of the global financial crisis (GFC) were keenly observed. The fall out from the GFC contained lessons for all markets, but not to the same extent. Commentators may therefore regard aspects of the South African reform agenda as replicative of initiatives in other jurisdictions and, consequently, uncritical in parts. In light of the fall to forty sixth place in the world in securities regulation ranking and some uncertainty in respect of the extent and shape of the reform process, this opus reviews activities in South Africa along the busy securities and capital markets value chain, and considers the continuing and emerging regulatory and supervisory framework.

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