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but it is safe for them as it limits the amounts they have to put in (unless they fail to perform their technical/operational obligations).

This is a good source of funds for clients that have good projects but no enough money (or want to share specific risks, like political risk in some countries).

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat May 19th, 2007 at 12:50:01 PM EST
[ Parent ]
High rates are only compatible with certain types of projects, no?

But I think you are doing a very old fashioned kind of banking that is inherently less profitable to the bank than large scale lending in liquid markets where risk models can replace all that tedious research.

by rootless2 on Sat May 19th, 2007 at 12:57:18 PM EST
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