The logic is that capital is plentiful in rich countries, but relatively scarce in developing countries; therefore it should get a better return in developing countries.
Clarification to this articleIN AMERICA, venture capital is plentiful.
That was not a problem as long as foreign capital was plentiful.
When the market is "soft", that is, when insurance is cheap and capital is plentiful, reinsurers are not too picky about what risks they underwrite.
When capital was plentiful, banks could go into businesses that were not particularly profitable but that might earn decent returns if magnified by debt.
Such a step puts downward pressure on interest rates and makes capital more plentiful for businesses and consumers alike, spurring economic growth.
John Wadle, Asian bank analyst for UBS in Hong Kong, said, "People may have done these deals at a time when capital was plentiful and hope was abundant, but now they have to be realistic".
In an age when capital is plentiful from private sources and new donors like China, how will the Bank continue to be relevant to its hard window and newly-graduated clients?
Zell says capital is plentiful, but regulatory clarity is in short supply amid a constantly changing landscape.
