Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
There are more tiers of seniority than "creditors" and "shareholders" or "debt" and "equity".

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

by Migeru (migeru at eurotrib dot com) on Tue Mar 13th, 2012 at 01:12:55 PM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

The UK's slide into despair

by tyronen - Mar 25
19 comments

Après May

by Frank Schnittger - Mar 22
81 comments

The gloves are off

by Frank Schnittger - Mar 20
32 comments

Brexit Fun: The John Bercow Show

by Oui - Mar 18
21 comments

Healing Earth (Through the Waters)

by gmoke - Mar 19
2 comments

No justice for Bloody Sunday

by IdiotSavant - Mar 14
2 comments

People playing games

by Frank Schnittger - Mar 15
50 comments

Occasional Series