But as anyone with a grasp of finance can understand, debt starts to look a lot like equity as the risk levels escalate.
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Like equity analysts, Keenan's staff of 24 do bottom-up research, monitoring and modeling free cash flow estimates to create their own credit ratings for borrowers.
Some of the leading crowdfunders fall into different categories like Equity ( see my earlier post), Donation, Reward and Debt (a.k.a.micro finance and peer-to-peer lending).
There is nothing like equity to assure that outside directors will take more than a passive interest in the decisions they make about a company's future.
Ping An and other insurers are also expected to benefit when China's insurance regulator allows them to place more of their investments into higher-yielding assets like equity and property.
The new investors may buy convertible preferred securities, that is, bond-like equity with an option to change to a set number of common shares at an established price and at an exercise date in the future.
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This will manifest itself in companies devoting a lower proportion of pay in time-based equity, like restricted stock, and a higher proportion of pay in performance-based equity, like performance shares.
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By the time it was listed in 1977, Reliance was beginning to look like an equity cult.
Like all equity investments, the value is linked to factors beyond the direction of the underlying commodities.
But money invested in "alternative assets" like private equity (and venture capital) would see expected returns of 14%-16%.
But there's money available from "under-the-radar sources" like private equity firms, he adds.
That means billionaires like private equity titan Peter Peterson and Texas oilman T.
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This also sounds a lot like the equity folks in the late 1990s who had everyone convinced on the other side of the argument.
In other words, given their current liabilities, they simply invested far too little in cash and liquid assets rather than too much in alternatives like private equity.
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Instead, we should enthusiastically support major sources of private-sector high-quality job growth like private equity, have a more balanced approach to regulation and encourage business formation with a tax policy that encourages investment and innovation.
Another perverse effect was that many who were seasoned prime mortgages used their home equity like an ATM card to tap the rising equity to buy consumer goods.
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At the same time, we should be celebrating that they are mostly long-term investors like Warren Buffett and are not trying to flip their investments in three to five years, like the private equity behemoths--though some like Dubai have been known to cash out of their investments quickly.
Cemig is a strong electric power utility that really is managed like a private equity firm.
Like other private equity and venture capital firms, they invest in some companies that fail.
But as Treasuries sink like stones, junk bonds yields have crept higher, serving up equity-like returns.
Wholesale lenders competed aggressively for market share by undercutting the banks and creating sexy new mortgage products like home-equity, interest-only and low-documentation loans.
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Instead, these investments would rely more heavily on active management--things like emerging market equity and debt funds, domestic high-yield bonds, small cap equities, real estate and private equity.
Deutsche Bank, long reliant on its investment bank to boost profits, now hopes for utility-like returns on equity of just 12% compared with the 20% it used to earn.
Many included gimmicks like instant home equity loans to offset down payments, or required scant documentation, making them popular with buyers who were stretching to purchase homes in a red-hot real estate market.
By reducing its share count, Goldman may be smoothing a new path towards earnings records, this time focusing on earnings per share over other metrics like return on equity, which remain stubbornly low.
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In order to do so, WisdomTree selects and weights 300 stocks in each portfolio that meet stringent long-term earnings growth expectations like return on equity and return on assets in addition to projected payout growth.
Such funds throw around terms like risk parity, equity long-short, market neutral and absolute return.
Working with a private equity firm like Blackstone "makes sense" for BHP, the analyst said.
Private equity stakes like Harvard's are selling at 40% to 60% discounts in various markets.
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