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As the first regulated financial institution in Colombia to specialise in low-income housing, it offers micro-mortgages between $3,000 and $28,000 to qualifying families.
Due to this, the capital structure of micro firms is biased towards mortgage loans (i.e., loans secured on land and buildings).
Due to this, the capital structure of micro firms is biased towards mortgage loans, as it allows them to avoid bankruptcy by carrying out debt enforcement via mortgage foreclosures, which are cheaper procedures than bankruptcy, in case of financial distress.
First, there is a positive and strong correlation between the ex-ante probability of default and the ratio of tangible fixed assets (the assets that can be pledged as mortgage collateral) to financial debt in the case of Spanish micro firms, suggesting that firms with risky business models bias their capital structure towards mortgage loans to avoid filing for bankruptcy in the event of default.
"While the government is preparing micro measures against inflation, (the central bank) probably thought a rate rise would burden consumers more, along with heavy mortgage loans".
Faked mortgages.
Take mortgages.
Or mortgages?
Subprime mortgages?
"Micro" resisted comfort.
So why the "micro"?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com