The effect on Slovak industry is serious, because companies can no longer raise equity finance.
CDFIs money at below-market rates, or put in grant or equity finance, which is then invested.
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Higher share prices make it cheap for firms to raise equity finance and so they invest more.
Rising share prices also made it cheaper for firms to raise equity finance, so fuelling a surge in investment.
With stocks trading low, several company founders raised enough private equity finance to take their companies off US exchanges and private again.
The new fund aims to complement existing public and private sector finance schemes available in Scotland, providing loan guarantees and equity finance alongside co-investment partners.
Part of the answer to the current SME funding crunch may lie in a greater role for equity finance and increased consolidation to create more robust, credit-worthy companies.
Emerging economies have been strikingly successful in raising equity finance in the form of foreign direct investment, which accounted for almost half of the private capital they imported in 2005.
There is another benefit for companies that buy back shares: they are likely to be able to raise equity finance later more cheaply, say Matthew Billett and Hui Xue from the University of Iowa.
The Liberal Democrat MSP said Scotland should have a single body to offer equity finance support for businesses and a single promotional, marketing and inward investment body, and believes that this would help more businesses grow and stimulate innovation and entrepreneurialism over the next decade.
Share of Small Business Owners Borrowing Against Home Equity to Finance Their Businesses, 2000-2007.
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Calder relishes his independence, so it isn't clear that he would consider selling out or even diluting his equity to finance a purchase.
And the housing market remains strong, with the lowest interest rates for 40 years encouraging many people to re-mortgage their homes and withdraw some of the equity to finance spending.
And on Thursday two Sydney-based private equity suitors, Allco Finance Group and Pacific Equity Partners , announced their interest in joining the consortium.
Spiegel speculate that as the baby boomer generation ages, they are likely to shift from buying stocks to selling their equity holdings to finance retirement, and this shift could be a factor holding down equity valuations over the next two decades.
SolarCity competitors like Sungevity and SunRun also are heavily dependent on tax-equity funds to finance solar leases.
FirstBuy has a similar aim for first-time buyers, but instead of paying rent, owners take out an equity loan to finance the balance.
The biggest problems may occur not in the bond market but in leveraged loans, the debt issued by private-equity companies to finance their buy-outs of public companies.
Banks--and most recently Google--have created so-called tax equity funds to finance those leases, in which investors get to pocket a 30% federal tax break for renewable energy projects.
Instead they're talking to private-equity investors to help finance their expansion plans.
So why on earth bring in a tax change which privileges debt finance above equity, investment in foreign companies over investment in US ones?
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Those who prefer chimerical solutions like higher capital requirements maintain that the business of banks would survive forcing banks to rely more on equity than debt to finance their activities.
In these restructurings, in the hierarchy of the world of corporate finance, common equity is actually a lower-quality asset.
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Mr Altman is especially worried by the large amount of low-quality debt issued in recent years, much of it to finance private-equity deals.
Now companies that finance themselves through equity and retained earnings, including giants like Apple and Google, will have the edge as interest rates rise.
As the chart below shows, during the home equity boom, they were more likely than their counterparts elsewhere to tap the equity in their homes to finance their businesses.
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They offer a lucid explanation of how the debt markets evolved from junk bonds to securitised loans, changing the types of deals that private-equity firms were able to finance.
His theories have also helped with understanding the choice between equity and debt, and corporate finance more generally.
With the mortgage interest deduction in place, both sources of housing finance, debt and equity, get a tax preference.
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