About half of that is related to sovereign debt or bank debt in those countries.
The quandry for Europe is the combination of sovereign debt and bank debt, which in some cases is to be able to lend to the sovereign nations.
Interestingly, Moody's tends to rate the debt of bank holding companies lower than the debt of their operating subsidiaries.
After a leveraged buyout a borrower will typically have debt (bonds plus bank debt) equal to four to seven times operating profit (in the sense of earnings before interest, taxes and depreciation).
The move comes as there are worries about European sovereign debt and bank-funding costs.
FORBES: INTERVIEW: Currency Market Intervention Can Be Supportive To Gold -- Thomson Reuters GFMS
In McKinsey's definition, this financial institution debt excludes bank lending to households and non-financial businesses, to avoid double counting.
These notes were akin to subordinated debt of bank holding companies: They provided a capital cushion to help protect policyholders from any future unpleasantness.
No prizes for guessing why: with all the bad debt on bank and company balance sheets, few are in any mood for major credit expansion.
The second element was championed by Charles Calomiris of Columbia University, who is a tireless advocate of a role for subordinated debt in bank regulation.
And the Federal Reserve Board is imposing new stress tests to determine whether leading banks can withstand a wave of sovereign- debt and bank defaults in Europe.
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Euroland is sick with endless sovereign debt and bank crises, unemployment near 10%, second quarter GDP down 0 .5% and bleak prospects as far as the eye can see.
ACAS, once the darling of the sector, had a near-death experience in 2009 as their equity-heavy investment portfolio collided with debt and bank obligations and the stock suffered a much steeper slide than the sector.
Younger intelligent investors, for instance, invest more funds into high-risk assets, such as equities and commodities, while older investors invest more funds into low risk or no risk assets, such as government and corporate debt and bank deposits.
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.
Now, with sovereign debt and bank solvency problems brewing once again in Ireland, and growing concerns that even larger problems are at hand in Portugal and Spain, it looks to us like another ECB rescue package for these troubled countries and their banking institutions could very well be in the offing.
FORBES: Monetary Watch November 2010: Bernanke not the only one printing money
Arguably all those purchases of sovereign and official debt by the Bank of England and US Federal Reserve, and purchases of such debt by eurozone banks with the benefit of subsidised loans from the European Central Bank, have created potentially dangerous bubbles in government bonds.
The steps here are first swap the remarked bank debt for equity shares in mutual funds while simultaneously selling the remarked bank assets to the mutual funds.
According to the Bank of England's analysis, if every single one of those countries went bust and wrote off 50% of their sovereign debt, banking debt and non-bank private-sector debt, that would wipe out around half the capital in the UK banking system - which is another way of saying that, in theory, the majority of our banks would limp on.
To buy time, Miller orchestrated a massive restructuring--selling assets, issuing stock and refinancing bank debt.
In Washington, clamor grows for a new Federal agency to deal with bad bank debt.
The continuing hunt for yield has also piqued investor interest in Turkish bank debt.
Not because of war, because of the social welfare system, aging populations and bank debt.
FORBES: When Sovereign Default Is The Most Attractive Option
Credit quality has deteriorated rapidly in recent months, both for marketable debt and for bank loans.
Greater use of leasing and factoring is reducing their ratios of bank debt to equity.
Buy-out firms also protected themselves by aggressively buying back bank debt at distressed prices when they could.
The portfolio is 35% in BB-rated issues, 35% in Bs, 15% in CCCs and 10% in bank debt.
Now that they're a going concern, they're hoping to pay off the card debt with a bank loan.
Around 60% of subordinated Spanish bank debt, excluding the healthy Santander and BBVA, is held by retail investors.
Bank debt, higher on the vulture pecking order, is trading at 72 cents.
Under the program announced this morning, the FDIC will insure new bank debt in the Temporary Liquidity Guarantee Program.
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