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Falling house prices mean less equity to raid.
As a rule, private equity firms prefer to pay less equity and take on more debt.
There's just a lot less equity out there chasing these deals today".
"People in other buildings have a lot more taxes, less equity and higher common charges.
P.M.I. protects lenders against foreclosures, which are more common among those with less equity in the house.
Less equity means the value of your debt will exceed the value of your asset that much sooner.
"The rates start to step up as you have less equity," says David Hollingworth of brokers London & Country.
When markets sell off, though, these funds have two advantages: With less equity exposure, their losses are buffered.
Had the two given less equity away over the firm's 34 years, that would be even higher.
Similar(2)
"In combination," he added, "less equity-market-driven tax receipts, slower growth and a large tax cut will prevent any flirtation with paying off U.S. Treasury debt".
Controlling for the simultaneous determination of CEO pay structure and board design, we find that firms with a higher proportion of non-independent outsiders on their boards pay less direct compensation (salary + bonus) and less equity-linked compensation to their CEOs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com