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But it is cash that services debt, and Softbank has a lot of debt a net ¥2.4 trillion at the latest count, over eight times more than equity.
Rather, the negotiations are aimed at strengthening Citigroup's capital position by replacing preferred shares, which resemble debt more than equity, with common shares.
Ram Shriram- At this point, money may be worth more than equity.
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Yet for most of their history, stock exchanges traded government bonds far more than equities.
Long-term bond prices could then drop even more than equities already have dropped.
In the past 130 years, the maximum gap of stocks yielding more than bonds was reached in 1941, whereas the maximum gap of bonds yielding more than equities was reached in 2000.
And these deficits are now being financed in riskier ways: more debt than equity; more short-term debt than long-term debt; more foreign-currency debt than local-currency debt; and more financing from fickle cross-border interbank flows.
Banks use more debt than equity to finance their activities.
All economic slowdowns are not created equal, and some economists believe that the characteristics of the current one are more worrisome than equity investors seem to think.
The largest category of customers for Reis services is lending institutions, because most real estate transactions are financed with far more debt than equity, Mr. Lynford said.
Every unnecessary dollar spent on the founders sets the tone that cash should be more important than equity to everyone involved in the business.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com