Equity
in sentence
1327 examples of Equity in a sentence
For years, China’s government sought to broaden
equity
ownership, thereby providing more Chinese citizens with a stake in a successful transition to a market economy.
Under Chapter 11, companies with a solid underlying business generally swap debt for
equity.
Old
equity
holders are wiped out and old debt claims are transformed into
equity
claims in the new entity which continues operating with a new capital structure.
If banks and financial institutions find it difficult to recapitalize (i.e., issue new equity), it is because investors are uncertain about the value of the assets in their portfolios and do not want to overpay.
Since we do not have time for Chapter 11 proceedings and we do not want to bail out all the creditors, the lesser evil is to do what judges do in contentious and overextended bankruptcy processes: impose a restructuring plan on creditors, with part of the debt forgiven in exchange for
equity
or warrants.
As corporate finance experts have been saying for 30 years, having too much debt and too little
equity
is costly, so reducing the face value of debt can sometimes benefit not only equity-holders, but also debt-holders.
But, while debt forgiveness benefits holders of both
equity
and debt, debt-holders don’t voluntarily agree to it for two reasons.
In the past year, the world has seen another boom, with a tsunami of capital, portfolio equity, and fixed-income investments surging into emerging-market countries perceived as having strong macroeconomic, policy, and financial fundamentals.
And, as the rankings change over time to reflect countries’ improving or worsening fundamentals, the
equity
markets that “smart beta” investors choose change accordingly.
(Full disclosure: my firm, together with a large global financial institution, is launching a series of tradable
equity
indices for stock markets of advanced economies and emerging markets, using a smart beta approach).
Instead, it should allow private
equity
funds, which have accumulated large amounts of savings as they await good investment opportunities, to act as AMCs, bidding for the NPLs at a discount.
Imagine that a fixed portion of new
equity
issues (IPOs) goes into a public trust that, in turn, generates an income stream from which a UBD is paid.
Instead, place a portion of Luke’s
equity
in the farm in a public trust, which then provides a universal payment to everyone.
But until its targets are translated into action, the world’s least-developed countries may not be convinced that the developed countries are serious about
equity
– or “climate justice.”
Though its problems are more acute for some countries and financial institutions, the sector runs on a level of profitability that is, on average, lower than its cost of
equity
and maintains a stock of non-performing loans and hard-to-value assets large enough to undermine its capitalization for years to come.
With private-equity activity having declined in the Middle East and indeed elsewhere in recent years, owing to the fallout from the Abraaj Capital saga, SOEs and SWFs in the region will likely continue to establish their own private
equity
vehicles.
This would benefit the local
equity
markets as much as – or perhaps even more than – the listing of the SOEs themselves, given that exchanges now include specific listing segments geared toward luring innovative firms.
Reflecting flawed economic arguments, India embraced autarky in trade and rejected inflows of
equity
investment.
It will be necessary to harness grass-roots dynamism and entrepreneurial potential to achieve social solidarity and
equity.
But, in order to ensure quality growth, the country must continue working to boost private business, expand
equity
financing, and advance decentralization, thereby spurring competition, innovation, and job creation.
Royalty Pharma focused on approved drugs with blockbuster potential, creating stable revenue streams and impressive
equity
returns – even during periods of extreme stock-market volatility.
Moreover, the risk reduction from diversification would allow the megafund to issue large amounts of debt as well as equity, further broadening the pool of potential investors.
This gives China added leverage, which it can use, say, to force borrowers to swap debt for equity, thereby expanding China’s global footprint by trapping a growing number of countries in debt servitude.
In addition to concerns about finances and sustainability, the issue raises urgent questions about
equity
and justice.
Achieving
equity
through fiscal transfers can ensure a level playing field.
The transition to a service economy often went hand in hand with the decline of unions, employment protections, and norms of pay equity, greatly weakening workers’ bargaining power and job security.
In fact, it is possible that we are entering a period in which major adaptations in employment models, work weeks, contract labor, minimum wages, and the delivery of essential public services will be needed in order to maintain social cohesion and uphold the core values of
equity
and intergenerational mobility.
After the crisis, studies by International Monetary Fund staff and others concluded that banks needed much more loss-absorbing
equity.
In 2009, only five cents of every dollar of funding for many major banks came from equity; the rest was debt (deposits, overnight loans, and long-term loans).
According to the IMF study, most banks could have weathered the crisis effectively if 15 cents of every dollar of funding had come from
equity.
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