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Lenders provided relatively cheap financing and required little equity.
"I call the train 'Little Equity,' " Mr. McCourt said, laughing.
And many condo owners have little equity in their apartments.
"They have very little equity, and that's the largest predictor of default".
First, the banks had too little equity capital in relation to the risks they were running.
While Ms. Hunter's buyer owned a house, he had very little equity in the house.
But too little equity could also threaten a company's solvency when the economy sours.
In the case of buyout firms, that means with as little equity as possible.
Investors are also nervous when highly leveraged companies have little equity in their portfolio, he said.
Sugar's mother has fallen behind on the mortgage payments, and her father has gambled away what little equity they had.
To make such trades worth doing, funds borrow a lot of money and make the trades using very little equity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com