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As Professor Admati has been arguing, we should rely on equity – not debt – to absorb losses in our financial system (see this comment letter).
In order to attract talent they rely on equity that's free to dole out at the time and only worth a lot if the company succeeds.
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Share indices have generally fallen since the quake, and insurers rely on equity-market investments to bolster capital and performance.
There was no real estate bubble here and relatively few rely on equities for their retirements or have credit-card debts, and job protections are much stronger.
Coty is relying on equity financing being provided by Berkshire; its parent company, the German conglomerate Joh. A. Benckiser; and clients of BDT.
Roughly 47 percent of employed Americans ages 50 to 70 said they were relying on equity in their homes, the Retirement Check-In survey from Ameriprise Financial found.
There is no current cap on care costs, with thousands relying on equity from their homes to help meet high bills and many at risk of losing their homes.
The increase, which was much higher than expected, may be showing that people who relied on equity from their homes rather than bank debt during the five-year housing boom are returning to more conventional credit as the real estate market cools.
He notes that about 85% of U.S. investors are investing for long-term goals such as retirement or a child's education; even before the great American bull market in equities, most Americans relied on equities and equity mutual funds as a pillar of their accumulation objectives.
"Over 11 million Americans work for private-equity-backed businesses, and millions more rely on private equity performance for their retirement security," said James Maloney, a spokesman for the American Investment Council, the industry's leading lobbying group.
Earlier this year, the Nikkei 225 slid alarmingly, threatening to bring down Japan's enfeebled banks, which rely on their equity holdings for capital.Not so fast.
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