Gruber argues that SCB took on too much risk in helping to finance this deal

Gruber argues that scb took on too much risk in

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(3)Gruber argues that SCB took on too much risk in helping to finance this deal. Based on the public information available, is he right? (4) He also argues that the debt should have been taken out in yen, and not hedged . Critically evaluate his reasoning .
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As cost of debt in Asia is generally cheap and Yen is a stable currency, the diversification debt in yen encourage to reduce costs and offset the impact of a stronger U . S . dollar, which tends to run dry during times of financial crisis, on earnings with more limited risk from currency fluctuations . (5)CP All did not want to buy all the shares of Makro, and thus maintain its listing although the free float is very low. Why would that be?
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  • Summer '19
  • Siam Makro

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