Debt carrying same risk as equity

The risk is especially high in long-term debt instruments

The last five years have seen a debt crisis building up to frightening proportions. Banks have been pushed to the edge of bankruptcy by the sheer magnitude of non-performing assets (NPAs). The defaults have happened across a wide range of sectors and involved some of the best-known corporates.  

It's important to note that many of the defaulting companies are run by highly experienced entrepreneurs who have run their businesses successfully for decades. Several defaulters had excellent credit ratings until the day that they failed to service their respective loans.

This meant lenders had little apparent cause to worry. When defaults of large