The lack of a Glass-Steagall Act in Europe has led European banks to wobble under the weight of their underwriting of European government debt and other investment banking challenges.
Despite limitations on debt that looked low at first glance compared to other investment vehicles, the extreme volatility in the underlying assets owned by the BDCs led to a death spiral involving forced liquidations, asset retrenchment, and dividend cuts.
Since March 2009, access to public equity and public debt markets have given listed REITs a crucial advantage over other real estate investment managers.
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Applied to investment banks, they do financing for other entities in need of debt financing.
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"After news that Cyprus is selling its gold, there's speculation that other debt-ridden countries might sell theirs, " said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
To the extent that scarce hard currency resources must be outlayed to repay debt obligations, such funds are unavailable for urgently needed investment and other stimuli to economic growth.
Unlike a bank loan or other types of debt financing, equity capital (whether it's an angel investment or venture capital) gives someone else an ownership interest in your company.
Examples: different tax rates on companies that are financed through debt rather than equity, different rates on overseas and domestic investment and other tax loopholes for certain industries, like oil and natural gas.
The rate on U.S. Treasuries is a function, among other things, of inflation, creditworthiness of the U.S. and alternative sovereign debt investment opportunities.
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"CDO" is a common term for collateralized debt obligation, an investment-grade security backed by a pool of bonds, loans and other assets.
Bond investors have consequently ditched Irish debt because of fears they would suffer a haircut, or in other words, lose some of their investment when Ireland tries to refinance or even when it gets bailed out.
Its investment banking division provides debt and equity underwriting services to corporates and merger related advisory services for institutions and competes with other established investment banks such as Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS and Wells Fargo.
Other groups have also indicated that business investment, including employment, is impacted by the issue of the national debt.
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