Capital raise trends: Turning off the capital spigot will expose insurers’ dependency
The ability to access capital allows a business to scale and execute on goals. If a business can demonstrate a return-on-equity higher than the cost of capital, it makes that business attractive to banks and investors.
In our financial system, the central bank heavily influences the cost of capital as it sets the federal funds rate – the rate at which commercial banks lend or borrow to each other.
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