Can company issue public debt if its privately held?

CFA Level II
#1

THanks.

#2

yup

#3

like Chrysler

#4

what is “public debt”? I thought a debt is public because of the issuer? rather than how it is floated? excuse my lack of understanding of FI.

#5

gios Wrote: ------------------------------------------------------- > what is “public debt”? I thought a debt is public > because of the issuer? rather than how it is > floated? > excuse my lack of understanding of FI. this was my original confusion. i thought u had to be listed on a public exchange to issue public debt. but i guess anyone can really issue debt that the public can fund. although that makes me wonder if there is such a thing as private debt?

#6

Just to clarify. In my earlier reponse, by “issuer”, I really meant government. If issued by government, it’s public debt. Debt by companies, whether they are public or private, is just “corporate bond”. Someone please enlighten me on this. the show NY Wrote: ------------------------------------------------------- > gios Wrote: > -------------------------------------------------- > ----- > > what is “public debt”? I thought a debt is > public > > because of the issuer? rather than how it is > > floated? > > excuse my lack of understanding of FI. > > > this was my original confusion. i thought u had > to be listed on a public exchange to issue public > debt. but i guess anyone can really issue debt > that the public can fund. although that makes me > wonder if there is such a thing as private debt?

#7

Anyone can issue “public debt”, as long as the securities are issued with the SEC (or the appropriate governmental regulatory body). However, if you do this, you need to issue 10-Qs and 10-Ks, just like a large public company would. FYI, leveraged loans are private debt that are not listed on any exchange, nor do the issuers need to file financial statements with the SEC, to answer your queries regarding “is there such a thing as private debt”.

#8

what is the actual difference in terms of characteristics between public and private debt? can you give a difference n the way theyre accounted for or examples of each?

#9

is this question relevant for what we need to do in about 40 days? If so go ahead and have a discussion, but please I beseech you, please stop this - if not relevant for the exam. there is much more going on elsewhere that a discussion would help with.

#10

youre right, thx cp