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Online Share Trading

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Down Grade

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Rams
Super Contributor
now inevitable, but does it really matter?
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13 REPLIES 13
SimonPB
Valued Contributor
yes to both
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Rovert
Super Contributor
What should we be doing to benefit from this, to offset our higher interest rates etc? Short financials and long precious metals? Your views ?
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SimonPB
Valued Contributor
certainly out or short banks, long non SA Inc .. commodities, not so sure
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Rams
Super Contributor
and open an offshore bank account?
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Blik
Super Contributor
Hi Simon, I assume that any downgrade notice will be reported pre-event? If not, any idea when the 3 stooges meet and decide?
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partridge
Super Contributor
Opening an offshore bank account - that would have cost you a lot between 9/12 and today...!!!! No decisions should ever be taken in isolation of one's overall objectives - they drive what one should do. The problem is that most people don't have quantifiable objectives: what they do have is objectives for "the weekend" - which get rolled over until they reflect a result - but no intention. ???
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SimonPB
Valued Contributor
not that simple, SP has us negative outlook one notch above junk .. they update again in june and dec, market pricing in junk from them I thinks (to a degree) .. fitch is one notch above junk, but stable outlook, moodys is 2 notch above junk but negative outlook ..
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Preston
Super Contributor
Ya, Same guys that priced the Mortgage Bond "AAA".
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koos2
Super Contributor
ok, so its a buy za ?
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Blik
Super Contributor
ok...I just need to tread carefully...my local investment portfolio is geared towards banks and insurance (has been for years), and I maybe need to think about my strategy a bit more. Although my portfolio has done well enough for me. I'm not averse to cash.
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Not applicable
before anyone gets into a panic here over ratings downgrades - there is a big difference between sovereign and corporate debt. Just because SA gets downgraded, doesn't mean a bank's bond yields will be affected. The issue to watch out for, as I understand it, is the sovereign ceiling policy, whereby ratings agencies will be more reluctant to rate corporate debt higher than the country in which they operate. But I don't think this is actually a blanket policy as opposed to a guideline of sorts.
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Rams
Super Contributor
So it seems, Pravin being Finance Minister not good for Guptas..,,
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SimonPB
Valued Contributor
skapp, you are correct .. but what we have seen is they have kept the banks in line with SA inc rating
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