What happens when banks find it more expensive to borrow or to issue equity capital?
The purpose of a corporation is to issue equity to investors to invest in projects that investors cannot invest in on their own.
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Banks will only issue equity because regulators force them to do so, not because it makes economic sense to reduce the costs of financial distress.
These bonds will convert into equity when financial distress becomes substantial or forces banks to issue equity to pay back the bonds to prevent the dilution.
Barrick in particular, Deutsche warns, carries a higher debt load and could be forced to issue equity in order to meet cap-ex requirements without increasing that burden.
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Rather than issue more equity, Lending Club invited current investors to sell their shares.
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At some point, the debt will need to be paid off, so there is always the possibility that the company will issue additional equity.
Because if these two had been forced to issue new equity, to sell new shares, that money might well have had to come from the state, from taxpayers.
Superglass is now considering "all options" to strengthen its balance sheet, including the potential for a further equity issue.
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Some form of equity issue is likely in the form of depositary receipts, because Yuksi wants to broaden a shareholding base that will be narrow at first.
And with these credit channels now blocked up, investment-banking activities such as helping companies to issue debt and equity are a crucial way of channelling savings to businesses with good ideas.
Even though the committee carefully avoided recommending the sale of the banks, urging instead that the government let them issue new private equity to dilute its stake to around 33%, the import was clear.
The Board believes that this considerable price appreciation, and the associated reduction in number of shares of stock covered by equity awards we issue to newly hired and existing employees, has reduced the perceived attractiveness of our employee equity awards.
But American trusts can't issue new debt or equity, so their reserves are a dwindling asset.
Yumeshin failed to block Japan Engineering's defences of a stock split and an equity warrant issue, but the Tokyo District Court laid down reassuring criteria for their use: that they must not simply be in the board's self-interest, and that they are subject to shareholders' approval.
Some of the true leaders pushing gender equity as an issue affecting all aspects of our world were with us.
Declining home prices and evaporating home equity is a huge issue, the implications of which upon our growing population of retirees have not been fully appreciated, largely because the financial pundits continue to assure us that the worst either is already or soon will be, behind us.
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One obvious issue is the lack of any government equity in the Karachaganak gas field in the northwest.
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Advertisers must balance the issue in play with their own brand equity.
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He thinks the company is likely to require a highly dilutive equity raise to deal with the debt issue.
As Sears pursues this strategy, the bigger issue will be what it can do to draw equity from its apparel and accessories category.
In an April 2012 issue of Bloomberg BusinessWeek, the mid-sized private equity firm Monomoy Capital Partners was featured in a cover story that sang the praises of their focus on eliminating waste and inefficiencies in their portfolio companies in order to significantly increase their earnings.
Housing bubbles arise when dumb bankers are willing to issue six-figure mortgages without asking questions and make home equity loans at inflated rates.
Private equity operators start to do deals in an active new issue market for debt securities and equities.
As private equity's kings stand blinking in the spotlight, another tricky issue has emerged: tax, and the fact that they tend to pay so little.
In his July 19 issue of Dow Theory Forecasts, Moroney advised holding 25% to 35% of equity portfolios in cash, a highly defensive posture based on the failure of the Dow Industrials and the Dow Transports to reach new recovery highs in the recent rally.
The bank's plan to issue 308.6 million new common shares was aimed at "strengthening the bank's equity capital in light of expected regulatory changes, " Chief Executive Josef Ackermann said.
The former private-equity executive also savaged his rival for the work he did for mortgage giant Freddie Mac, an issue that resonated in a state hard-hit by the housing slump.
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