In the 1980s Japanese companies raised cheap equity-linked debt to build lots of factories, shops and so forth in the expectation that the economy would continue to grow at a fair clip.
Deflation pushes up the real burden of debt, while the value of assets linked to that debt, such as house prices, may have to fall even more sharply in nominal terms to return to a fair level.
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.
Second, Treasury debt is linked (directly or indirectly) to inflation.
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With most of the country's major lenders discovering billion-dollar losses linked to bad mortgage debt as the US housing market collapsed, investment banks such as Bear Stearns needed government funds ahead of being sold off cheaply, while another, Lehman Brothers, was ultimately closed down.
Annual budgets and federal debt should be linked to our gross domestic product (GDP).
Alibaba intends to finance the repurchase through a combination of its own cash resources, debt, equity and equity-linked financing.
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At least with the inflation linked loans there's no worry about my loan debt spiralling after graduation.
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We never linked the fairly routine procedure of voting to increase the debt ceiling, voting to ensure that Congress pays the bills that it has already taken on to action on the deficit or the debt.
The negative yield on inflation-linked bonds is just a corollary of the very low yields on conventional debt.
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And government debt is rising due to overgenerous civil-service pay and benefits (including index-linked pay rises twice a year).
The financial meltdown has certainly undermined two of the big ideas inspired by Messrs Jensen and Meckling: that senior managers' pay should be closely linked to their firm's share price, and that private equity, backed by mountains of debt, would do a better job of getting managers to maximise value than the public equity markets.
Magnetar Capital LLC, another hedge-fund firm that, like Paulson, was heavily invested in collateralized debt obligations in 2007 also has been working to reassure investors that it believes its mortgage-linked investment strategy was sound and can withstand regulatory scrutiny.
Nearly two weeks ago, Nomura analyst Alastair Syme floated what looked like a novel idea at the time: with debt financing appearing expensive and asset sales taking time, oil giant BP may consider an equity-linked financing backed by a sovereign wealth fund.
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