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The extent to which it's less risky is basically a function of credit seniority and recovery/collateral values. There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
Interestingly, in English there's "equity" and "debt" = "fixed income", but in Spanish there's no word for "equity". Rather there's "fixed income" (renta fija) and "variable income" (renta variable).
What makes equity more risky than debt is not the seniority but the discretionality of dividend payments. There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
But of course, there are differnt kinds of seniority when it comes to bonds as well, and the more junior bonds pay higher interest. That's completely reasonable and not mysterious at all. Peak oil is not an energy crisis. It is a liquid fuel crisis.
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