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Wilpon and Katz, who are brothers-in-law, built their company, Sterling Equities, out of investments in real estate, sports and private equity.
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Individual borrower repayment rates are excellent, he added, but there are few statistics available for default rates of microfinance institutions; if an institution defaults, how will investors get their equity out without hurting the institution's clients?
"They wanted to get their equity out," she said.
First, loans are called and existing shareholders have their equity wiped out; the banks end up owning the companies, as unserviceable debts are swapped for equity.
Nevertheless, the Budget reforms do threaten a sector on which, as Radius Equity points out, companies have come to rely.
Even if its creditors converted their loans to equity, cutting out interest payments entirely, McClatchy would still lose money.
This week, Jean Rogers of the actors' union Equity spoke out, highlighting the need for better employment opportunities for women.
Martin Brown of Equity pointed out that, as children are not eligible for membership, his union can only make pay recommendations.
There's just a lot less equity out there chasing these deals today".
The loans in question were largely used to refinance mortgages and take equity out of homes.
There is no charge for taking equity out of the home.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com