18
Capital Structure Trends
§Senior debt is more expensive and available in smaller amounts than previous years
§Much of the TARP
money has been disbursed but
little of it used for new loans
§Politicians tell
banks to increase lending while the regulators sitting in the bank’s offices are saying don’t lend
§Additional equity is now a requirement
§Mezzanine debt (relatively high coupon debt plus warrants) is still available and is now a much more important component
