Word: riskier
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Finance scholars also bolted a third plank onto Smith's two reasons this was so and would continue to be: stocks were riskier than bonds, and stock investors were thus being paid a premium for taking on that additional risk...
...This piece of the transaction has proved most controversial - and is perhaps the biggest potential obstacle to a smooth reorganization of GM. The problem: the VEBA's haircut - trading promised cash for riskier shares - is less severe than the deal offered to some bondholders. And that's not the way bankruptcy is normally done...
...that it's up to him, Obama's spine appears to have weakened too. It's hard to imagine that Republicans would filibuster the budget over funding for needle exchange, and going back to Congress later to address the issue specifically seems a riskier tack...
...that fall in the lowest category that still manage to be considered "investment grade" are yielding 5.3 percentage points more than government bonds. That's down from a high spread of 6.2 but still far above the 22-year average of 2.2 points. High-yield bonds, which are even riskier, are at a spread of 15.2. That's down from a high of 19.8 - yet three times the long-term average...
...well-coordinated action by regional governments can prevent pirate attacks on commercial shipping. "From Roman times to the Barbary pirates, throughout history, the reasons [for resolving piracy] are always the same," says Pottengal Mukundan, director of the International Marine Bureau in London. "For pirates, it becomes a much riskier activity. That is really the deterrent...