Borrowing money against company assets can help you generate liquidity to raise capital or create greater operating flexibility with generally few or no financial covenants, including higher balance sheet leverage. (suntrustrh.com)
The high degree of balance sheet leverage for certain bond insurers means that small changes in the values of these portfolios have a large impact on the bond insurers» capital base. (nakedcapitalism.com)
While Chevron may be able to increase their dividend through the issuance of debt, we greatly prefer to invest in companies that are growing their dividends through operational cash flow not through increased balance sheet leverage. (ammdividendletter.com)