PSG Konsult eyes note plan
Corporate-debt market has frozen due to downgrades
PSG Konsult is considering launching a domestic medium-term note (DMTN) programme in the light of downgrades of debt in the financial-services sector after S&P’s and Fitch’s decisions to cut SA’s foreign-denominated debt to junk. The corporate-debt market has "frozen" as a result, says Ashburton portfolio manager Wayne McCurrie, with telecommunications company MTN and industrial conglomerate Barloworld both cancelling planned debt issues. The PSG-controlled wealth manager said at the release of its results for the year to February that the note programme would give it a flexible cost-effective structure to fund its ScriptFin loan book internally. ScriptFin lends money to subsidiary PSG Wealth’s customers to continue buying securities, with loans secured against their investment portfolios. "We are concerned by the recent sovereign-rating downgrade," said CEO Francois Gouws. "It was not ideal and does create headwinds for our initial DMTN funding programme. While we intend finding a ...
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