REITs are less likely to suffer financial distress because they rely much less on debt-financing, with its onerous obligations to pay interest.
For some time now, demand for houses has been artificially boosted by federal and state tax policies, rising governmental involvement in residential-debt financing, and persistently low interest rates orchestrated by the Federal Reserve.
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More restrictive fiscal paths are being proposed in order to avoid rapidly rising government debt-to-GDP ratios and the financing challenges they may entail, including the possibility of default for nations without sovereign currencies.
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However, it would yield a chronic deflation that would produce high unemployment and would likely make long-term debt financing too risky (for both lender and borrower) to be undertaken.
Another rapidly growing country with a decentralized government, Brazil has financed nearly every renewable energy project through the National Social Economic Development Bank (BNDES) with low-cost and long-term debt financing.
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In addition to generating those exceptional internal returns, the firm has upped EPS in every year of the past decade and it has no long-term debt, showing the consistency and conservative financing my Buffett-based model cherishes.
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Infrastructure projects require lots of debt, but long-term financing in reais is extremely expensive.
Alibaba intends to finance the repurchase through a combination of its own cash resources, debt, equity and equity-linked financing.
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As a result, the affiliated companies were not liable for American Tissue's debt--even though, creditors claim, the affiliates benefited by receiving financing from American Tissue.
SolarCity, which has said it plans to go public and has filed a confidential IPO registration statement, will install, own and maintain the solar arrays, financing the projects through debt-equity funds it taps to pay for panels for customers who lease their photovoltaic systems.
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Helpfully, financing of high-grade corporate debt is cheap at the moment.
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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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Using a combination of junk bond debt and bank financing, Singleton and his 87-year-old partner, Richard Scudder, are masters at bunching smallish suburban and hick-town papers around metro areas and skimming off advertising revenue that would otherwise go to the big paper in the city.
Buyers of retail property have been taking advantage of debt financing available from the sale of commercial mortgage-backed securities, a market that has been gathering steam.
So founder Don MacAskill hired his father, Chris, to help set up a subscription-only site with no advertisers, no debt financing and an emphasis on total user control of their photos.
Based on discussions with equity co-investors, certain strategic partners, and debt financing sources, we are highly confident that financing can be arranged, which will include comparable debt sources and structures as the existing deal.
The fear that interest rates would spike, along with a sharp increase in the financing costs of their short-term debt caused a run for the exits, and many of these high-yield bets were hit hard.
Dick May, managing director of American Working Capital, a private equity firm in Los Angeles and Chicago, said the family that founded American Greetings is taking advantage of low multiples in an out-of-favor industry, as well as inexpensive debt financing to bet on its future.
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The unique thing this time around is that the debt financing is being done less via traditional banks but non-banks.
Still, the major debt-market improvements will lead to more leverage and easier terms for PE financing.
Convertible debt has long served nobly as the default form of financing for early-stage startups.
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"The DOE loan program provides an important financing 'bridge' at a time when the U.S. private debt markets have little to no experience financing first of their kind utility-scale solar projects, " First Solar Chief Executive Rob Gillette said in an email.
History shows that the real burden of government on the economy is its overall spending, not the manner in which its outlays are financed (although an economy is slightly less-burdened, for any given level of spending, by debt financing than by tax financing).
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With financing costs down, however, rising debt multiples have not sliced cash-flow coverage for new LBOs.
Debt financing was available, but at escalating rates and only for the already-rich.
When, in the minds of the electorate, the congressional spending decision becomes separated from the financing decision, voters lose sight of the fact that the whole debt-limit issue arises due to deficit spending.
Right now, if Greece were to default on its debt and lose all external financing, it would be forced to immediately cut its non-interest spending from 43.9% of GDP to 39.0% of GDP.
Ill-informed consumers, he maintains, focus on the immediate financing costs of mortgages even though the debt will typically last for decades.
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