Financial loss-absorbing capacity (FLAC) instruments were introduced into South Africa’s fixed income market as part of broader regulatory reforms to strengthen the banking system. Over time, FLAC notes will replace senior unsecured debt issuance.
In this episode of the Corporate Conversation podcast, I chat to Eulali Gouws, Head of Money Market at STANLIB Asset Management, to explain why FLAC notes are being introduced, how they fit into a portfolio, and what this development means for corporate treasurers.
What FLAC notes mean for corporate cash portfolios
FLAC is changing how banks issue debt. Corporate treasurers and financial directors should understand its potential impact on cash management strategies and investment decisions.
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