Tag Archives: Leverage

It’s All About Liquidity The history of markets has taught us that trauma conditions which are bad enough to earn a “crisis” label share a simple characteristic: Financial assets trade routinely and at orderly prices… until they suddenly don’t. Debt = risk; risk requires management Despite the glibness in public media on the subject, “leverage” is not an appropriate synonym for debt. Debt earns the leverage moniker when the debtor has reasonably predictable cash resources that will be adequate to service the scheduled repayment. Any other debt situation is an albatross, floating on the least reliable of all debt-service tools….hope. … Continue reading →