@Bob902661 1. They're making out that Trump himself has a huge sent owing to the Bank of China.
A corporation or trust (not an individual) uses debt to finance a project or acquisition.
That's the DEBT FINANCING part.
Now, the MEZZANINE bit.
A corporation or trust (not an individual) uses debt to finance a project or acquisition.
That's the DEBT FINANCING part.
Now, the MEZZANINE bit.
@Bob902661 2. Deals are struck with multiple lenders, to raise the $.
So, Lender A: 'we will lend $20 million for a rate of return of 5%.'
Lender B : 'we will lend $50 million but we want 7%.'
And so on.
It's way more complicated than that, but you get the idea.
So, Lender A: 'we will lend $20 million for a rate of return of 5%.'
Lender B : 'we will lend $50 million but we want 7%.'
And so on.
It's way more complicated than that, but you get the idea.
@Bob902661 3. The lenders are in effect placed in a 'mezzanine' structure, depending on the risk(s) they take & what they lend, in respect of that particular deal.
So, in conclusion :
So, in conclusion :
@Bob902661 4. Bank of China would be one of several lenders (not just 1) to a corporation (not to Trump himself), for just one of MANY projects being run around the world by Trump corporations and their subsidiaries.
Politico's ignorance is embarrassing.
But that's #FakeNews
The end.
Politico's ignorance is embarrassing.
But that's #FakeNews
The end.
