Posts Tagged ‘indebted’

Leveraged Loans defined:

“…arranged by a syndicate of banks, to companies that are heavily indebted or have weak credit ratings.” -IMF

“…are effectively provided to companies already swimming in debt.” -Nomi Prins

“That was all good and well when interest rates were super low, making it easier for companies to borrow oodles of money,”

“This year, leveraged loan issuance reached an annual rate of $745 billion. That’s nearly the same as the prior record of $762 billion in 2007 before the financial crisis and just a bit less than last year’s record of $788 billion globally.”

Advertisements

“Debt is one person’s liability, but another person’s asset.” –Paul Krugman.  This statement is true any time a person goes into debt unto another.  In essence, the indebted transfers their money to another.  The indebted could reverse this transfer of money by simply creating a pool, or reserve, of money from which to provide their own capital needs.