This thinking was followed by the blinkered that simply forgot to note that before debt and equity, why even before national currency there were commodities.
Putting the debt in U.S. dollars and possibly yen is smart and hedging the debt will limit currency fluctuations (note that un-hedged debt burnt many Thai corporates during the Asian crisis).
Managers may increase risk, as you note, by issuing debt to repurchase equity.
On a brighter note, other peripheral Eurozone debt issues this week went rather well, resulting in a healthy bid-to-cover ratio, with both Spanish and Italian bonds rallying a tad.
Some point to the far more tenuous nature of a public-sector-led recovery ( Calvo and Lu-Koong 2010), while others note the rising risks of debt problems in the horizon, notably in the Eurozone ( Baldwin 2010, Cabral 2010, Reinhart 2010).
Importantly, note that these figures include both debt reduction and contributions to pension plans and 401(k)s.
But they also note that if exceeding that level of debt is safe, why do governments so rarely borrow that much.
On a similar note, one of our emerging market debt managers added diversification and was able to return over 40% during one of the rising rate periods.
That point has clearly not arrived yet, with the 10-year Treasury note still below 2%, but debt markets tend to lose faith very slowly at first, then very rapidly.
The note between the two parties was a legitimate debt of S Corporation 1 and an asset of S Corporation 2.
In that case the debt-like features of a convertible note are much less attractive for an investor than traditional equity.
FORBES: When Convertible Notes Make Sense For Consumer Companies
We note that near-term U.S. debt downgrade-driven worries could dampen demand, but the third quarter is typically the least important for the technology sector.
Hently, a 1680 case that said an indebted merchant owed his debt to the person who had lent him the money, not to a debt collector who came around bearing a note.
Although all of the bids were lower than the debt on the property, that the note received serious bids at all is the latest sign that competition for prime land parcels in downtown Chicago is gaining momentum, brokers said.
If you are one of those who rails against the short-termism and excessive risk-taking of some banks and finance businesses, you might note that a public sector financial institution, the Debt Management Office, has taken a reassuringly long-term approach to managing the UK government's debts - and without its prudence, we might all be in Queer Street or Skid Row by now.
The check should be payable, as above, to the Bureau of the Public Debt, and be sure to put a note in the Memo Section of your check.
"The trouble is, the rising tide has raised both good ships and pirates, " wrote Vicki Bryan, an analyst at debt research firm GimmeCredit, in a recent note to clients.
If the U.S. government temporarily misses a debt payment while promising to make bondholders whole as soon as the debt limit was raised, 10-year note yields would rise about 37 bp, according to the average estimate of 45 JPMorgan Chase (JPM) clients that it surveyed.
On a positive note, this holiday season may mean that consumers learned their debt lesson.
Lorence notes that wash sale treatment depends on whether the ETF holds a basket of securities or if the ETF or exchange-traded note (ETN) is a security such as an option or debt instrument.
Analysts also note the consumer-staples sector generally tends to be more supportive of debt loads because sales, even if uninspiring, are usually relatively stable.
In continental Europe, the record suggests that activist fiscal policy brought permanently higher public spending and debt a point Mr Trichet has been quick to note.
Note how these two combined to create a third problem: rising private-sector debt.
FORBES: The Great Recession: How We Got Here (and How to Get Out)
Alternatively, can A assume the debt S Corporation 1 owes to S Corporation 2 in return for a promissory note from A to S Corporation 2?
The index started the week on a positive note as Greece's pro-bailout New Democracy party claimed victory in elections and successful Spanish debt auctions spurred a rally in equities.
Even with the lift in equities, investors were putting their money in safe government debt, pulling down the yield on the benchmark 10-year U.S. Treasury note to 3.14%, from 3.34% Monday.
Trade groups note that life insurers are long-term investors and among the biggest holders of the nation's corporate debt, giving Congress a strong incentive to keep the tax advantages in place and avoid destabilizing a key player in the economy.
WSJ: Shift to Wealthier Clientele Puts Life Insurers in a Bind
On Monday, rates on U.S. Treasury securities, which are tied to the rates for prices of corporate debt, hit their lowest yields this year, at 1.65% on the 10-year note.
One note: Because of the way financial and utility companies are financed (i.e. with large amounts of debt), Greenblatt excludes them from his screening process, so I do the same.
Yields on short term debt have seen an even more dramatic decline, as the yields on the five-year T-Note have dropped from 1.84% in early July to a low of 1.12%.
应用推荐