Leveraged private partnership that invests in debt of companies with significant financial or business problems, hoping to capitalize on potential turnarounds.
If their own heartfelt financial literacy education outreach has done little to restore their battered brands, their partnership with outside professionals wholly dedicated to debt resolution sends a stronger message.
Is there a possibility that at some point, again like in a real estate partnership, the U.S. debt will rise to such a level that you start having to pay a higher rate of interest?
As a result, continued rhetoric and indications that either party might be willing to default on its debt will have the same effects as a real estate partnership that does the same: They will pay a higher interest rate and at some point if it continues long enough will have increasing difficulty borrowing money.
For instance, prosecutors say, he was involved in manufacturing earnings and concealing debt through sham sales of poorly performing assets to an off-balance-sheet partnership run by Andrew Fastow, Enron's former chief financial officer.