(original source iStockAnalyst)
“I think there’s no reason why as we’ve done in other instances of (sic) finding the right mechanism to break them into their components.
“Without the fear of loss to creditors, these large firms can use higher leverage, which allows them to fund more assets with lower cost debt instead of more expensive equity,” he said.
That allows them to get even bigger, leaving their smaller competitors behind who need to worry about raising equity before they can fund more loans.”
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