Since March 2009, access to public equity and public debt markets have given listed REITs a crucial advantage over other real estate investment managers.
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For three decades they have acted as quasi-official regulators of public debt markets, and yet enjoyed the fat fees of financial intermediaries, all the while escaping the brunt of attacks on bankers, auditors and the rest of the financial industry.
Although its size is what makes some investors tremble, its bigger and more liquid public-debt markets also offer protection.
Usually, colleges get a new bond rating when they issue new debt through public markets, and the evaluation affects already-issued debt.
Actually raising the capital is the next big problem for countries such as Spain or Italy, which are already struggling to convince markets that their public debt is sustainable.
Netting off the cash the government has set aside in case bond markets turn nasty leaves public debt at 109% of GDP this year, rising to 121% by 2015.
By ridding the nation of Taxation and instituting borrowing to fund public expenditures, the nation will shed all those costs of Taxation in deterrence and government excess for the negligible fee of borrowing in the financial markets and the administration of public debt.
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Modern, global capital markets have never seen a rise in public debt so fast or so skewed towards the rich world.
And, despite a few recent wobbles, the bond markets seem largely unconcerned about Belgium's giant public debt of close to 100% of GDP.
In turn, investors pour money into public equities in search of returns they can no longer access in the debt markets.
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The financial meltdown has certainly undermined two of the big ideas inspired by Messrs Jensen and Meckling: that senior managers' pay should be closely linked to their firm's share price, and that private equity, backed by mountains of debt, would do a better job of getting managers to maximise value than the public equity markets.
Guarantees encourage banks to operate with higher levels of leverage because markets believe that their liabilities--not just customer deposits but also their uninsured public debt--are guaranteed.
Until financial markets crashed in 2008, Spain and Ireland were hailed as economic stars, with lower public-debt burdens and healthier budgets than Germany.
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