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But companies are increasingly willing to use debt in deals.
Sysco, which will use debt to finance the purchase, wants to expand through acquisitions.
And the wealthy can use debt to increase their investment returns without taking on excessive risk.
The reason that private equity firms in Brazil do not use debt is simple.
Partners III holds larger companies and can use debt and short-selling to try to bolster its results.
That spells danger for investors in leveraged ETFs, which use debt to magnify the returns of the index they follow.
Mr. Mori's willingness to use debt led to a parting of ways with his younger brother, Akira, who started his own real estate company, Mori Trust.
The old rule of thumb holds true: Do not use debt to buy assets that are likely to depreciate — cars, boats, consumer goods, stocks.
If our public policy is to use debt to finance education, we owe it to students to provide ways to help them manage that debt after graduation.
Mr. Forstmann was among the first executives to use debt to acquire companies, fix them and then sell them for millions — and sometimes billions — of dollars in profit.
Inverse funds allow investors to short an index, or bet against its performance, while leveraged funds enable investors to use debt and derivatives to enhance the performance.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com