The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
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.
by Frank Schnittger - May 31
by Oui - May 30 15 comments
by Frank Schnittger - May 23 3 comments
by Frank Schnittger - May 27 3 comments
by Frank Schnittger - May 5 22 comments
by Oui - May 13 66 comments
by Carrie - Apr 30 7 comments
by Oui - Jun 17 comments
by Oui - May 3125 comments
by Oui - May 3015 comments
by Frank Schnittger - May 273 comments
by Oui - May 2726 comments
by Oui - May 24
by Frank Schnittger - May 233 comments
by Oui - May 1366 comments
by Oui - May 910 comments
by Frank Schnittger - May 522 comments
by Oui - May 450 comments
by Oui - May 312 comments
by Oui - Apr 30273 comments
by Carrie - Apr 307 comments
by Oui - Apr 2644 comments
by Oui - Apr 889 comments
by Oui - Mar 19144 comments