Daily Archives: 16/02/2011

The era of cheap capital draws to a close – McKinsey Quarterly – Corporate Finance – Capital Management

The era of cheap capital draws to a close – McKinsey Quarterly – Corporate Finance – Capital Management.

Here is another short article that is predicting that as demand for capital is growing to finance the growth of the global economy and as available funds are becoming scarce, this will trigger a new era where capital costs more than before.

The question then becomes: is this going to reshuffle the growth agenda and how it is distributed across the globe? Unfortunately no, as a country like China is not only a big money saver but also attracts a lot sovereign wealth funds, they will continue to enjoy economic growth way above the global average. So the winners of today seem to be the winners of tomorrow for the foreseeable future…

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