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A.I.G.'s big borrowings underscore the company's bewilderingly rapid decline.
At the moment, historically low rates have cosseted hedge funds and other investment groups with big borrowings.
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Often this has been financed with large borrowings.
And, despite capital controls that place limits on external borrowings, India's big companies can raise huge amounts of money abroad.
That crisis revealed that many of the world's biggest financial firms had mountainous borrowings, and were acutely vulnerable to rising interest rates.
Its borrowings are barely bigger than one year's earnings before interest, taxes, depreciation and amortization, but it lacks financial discipline.
In the last few years, most firms that specialize in leveraged buyouts -- the use of junk bonds, bank loans and other borrowings to buy or take big stakes in companies -- have been largely inactive.
The fund's problems were compounded by its borrowings, which were ten times bigger than its $600m in capital.
That means the island's debt load, relative to G.D.P., is getting bigger every day, effectively forcing Puerto Rico to borrow money to pay off past borrowings, which of course leaves it further in debt and makes it harder to get out.
WASHINGTON — Large hedge funds, the very private investment outfits that borrow money to magnify their big financial bets, will be required for the first time to report detailed information on their investments and borrowings under a rule adopted by the Securities and Exchange Commission on Wednesday.
By comparison Endemol, the production house behind Big Brother where Toumazis was chief commercial officer, is saddled with borrowings of around 10 times earnings.
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