Sindh Today Oct 10, 2008 Greater Clarity On Meltdown Making Investors Jittery
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'This means that now FIIs and hedge funds have to repay a lot more dollars for every yen that they had borrowed and the cost of their yen-denominated loans has actually gone up from 0.5 percent to as much as 5-6 percent,' Thunuguntla said. 'This means, with more and more FIIs and hedge funds now being forced to repay what has become high-cost yendenominated loans, their losses too are climbing,' he added. Consequently, they are getting into fire sale situations in most global markets to raise money to repay these yendenominated loans, besides being already under redemption pressure, he said.
