Then there was W Financial, through which he peddled the bogus secured debt obligations.
This may require the impairment of non-secured debt holders, something we have so far been reluctant to do.
Even airlines with healthy balance sheets, such as American and Southwest, are having to pay 10-11% on secured debt.
After all, many of these options are replacing unsecured debt with secured debt.
FORBES: Why You Might Be Paying More Interest Than You Need to Be
Since subordinated debt has less protection than senior, secured debt in bankruptcy proceedings, Triangle is able to charge higher, junk-bond rates to borrowers.
The company reports in its 10-K that it expects to incur substantial additional debt (including secured debt) in the future to help cover the costs of its fleet.
FORBES: Moody's Lowered Outlook Stokes AMR Liquidity Concerns
Among them: hedge funds, untraded securities, foreign-exchange contracts, precious-metal bullion, tax liens, natural-gas wells, private mortgages and other secured debt, movie partnerships, cattle, fishing rights and even investments in bull semen.
During the first quarter, managers began to report that they were finding it easier to get traction when touting the leveraged loan product, as end-investors seeking yield are increasingly drawn to senior secured debt.
FORBES: European leveraged loans see inflow of new money via managed accounts
After creditors of Chrysler , America's third-largest car company, rejected government requests to slash the company's secured debt by 85%, the Treasury reportedly proposed cutting it by 78% and giving the creditors a 5% equity stake.
In order to secure the 10bn euros, agreed by the EU and IMF, Cyprus was forced to wind up one major bank and write-off of a large portion of secured debt and uninsured deposits in the largest bank, Bank of Cyprus.
The precious metals markets were boosted by news that Greece and the European Union have finally secured a debt-restructuring deal.
FORBES: Comex Gold Rallies Strongly on Bullish Outside Mkts, Greek Debt Deal, Fresh Tech. Buying
Reducing leverage and increasing lower-yielding but secured-debt investments are a good start.
Unlike many other EU countries, including the UK, Dublin has included secured mortgage debt within its insolvency regime, in an effort to encourage banks to negotiate long-term restructuring deals with debtors.
With unions and major banks in line to accept major concessions, the last major hurdle was getting other lenders, mainly hedge funds, to write down most of their secured Chrysler debt.
Under the reorganization plan, secured bank debt incurred before the bankruptcy as well as unsecured bond debt and certain general unsecured claims will be cancelled with those creditors receiving equity in the reorganized company.
While equity stock offerings were used frequently to build their businesses, the BDCs still had large amounts of debt secured by loans and equity investments in the very companies that are most susceptible to liquidity constraints during recessions.
What is already clear, and makes worse scenarios more likely, is that growth in corporate profits is certain to slow this year, recession or not, due to sluggish growth in demand, rising interest costs (caused by refinancings of debt secured when long-term interest rates were lower than today) and accelerating depreciation costs.
In the case of residence interest what the debt is secured by becomes relevant.
FORBES: Would Be Developer Tripped Up By Interest Tracing Rules
If the debt is secured against assets, then the borrower may be forced to sell.
"However, having secured control of the debt, American Greetings immediately informed the board that it intended to enforce the loan against the company, " the retailer said in a statement earlier on Wednesday.
The current yield is lower than what the company would have secured in Brazilian local currency debt.
But owning fund-management groups is not without pitfalls, because they have no tangible assets against which debt can be secured.
In other words, the debt must have been taken out to acquire, construct or improve the home and the debt must be secured by the property.
Last week, Hargreaves Services, a coal-mining and logistics company based in Durham, bought the debt linked to secured assets that belonged to another big Scottish coal producer ATH, which was forced into administration in December.
At its heart the crisis was a problem of too much debt, much of it secured against property.
This week, Marne et Champagne, a French champagne maker planning a stockmarket listing, said that it is replacing bank debt with euro400m in bonds, secured against its champagne stocks.
Critics of the government's plan to reorganize Chrysler say it rewards junior debt holders at the expense of senior secured creditors, some of which have agreed to take 30 cents on the dollar for their investment.
That fund would be secured by those assets, which members would then get back as they paid down their excess debt, over and above that 60% ceiling, over a period of 20 years.
FORBES: End The Euro Zone Crisis Now: Let PIIGS Borrow Against Their Gold
应用推荐