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Debt bomb |
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Debt bombA default on debt and obligations by a major financial institution that disrupts the stability of the economic system.Debt bomb Similar MatchesDebt to equity ratioDebt to equity ratioNet borrowings of a company divided by shareholders' funds. The ratio shows the amount of financing that is provided by sources other than the shareholders.Net borrowings means the total borrowings of the company from banks, other financial institutions, debenture holders and preference shareholders, less any cash that is readily available and any short term cash holdings.Both figures can be found in a company's balance sheet. The ratio is often multiplied by 100 and expressed as a percentage. The higher the percentage, the more risky for lenders to the company. Most lenders like the percentage to be below 50%. If it is above 100%, the company is said to be highly geared. Underlying debtUnderlying debtMunicipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility. Cash Available for Debt ServiceCash Available for Debt ServiceRatio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm. The higher the ratio the less likely the firm or project will fail to meet its debt obligations. Firms net value of debtFirms net value of debtTotal firm value minus total firm debt. Structured debtStructured debtDebt that has been customized for the buyer, often by incorporating unusual options. Further SuggestionsDebtSecured debt Debt limit Debt retirement Effective debt debt National debt Debt capacity Debt burden Debt Original issue discount debt (OID debt) Self supporting debt Debt leverage National debt Bad debt Debt service coverage ratio debt refinancing Debt overhang Certificates of Amortized Revolving Debt (CARD) Debt crisis Balance of indebtedness Debt for equity swap Public debt Floating debt Monetize the debt |
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