By contrast, Mr Shimpi, who was a broker at Drexel Burnham Lambert and a banker at Chase before he joined Swiss Re, intuitively treats all forms of financial capital the same.
ECONOMIST: Corporate finance
2.
To Mr Shimpi, this outcome is absurd, the result of an arbitrary wall that has historically separated finance directors, who deal with debt and equity, from risk managers, who deal with hedging and insurance.
ECONOMIST: Corporate finance
3.
So Mr Shimpi tells his clients to overcome their preoccupation with the debt-equity ratio and to concentrate instead on the underlying issues: how much capital does the company need, and how much should be on and off the balance sheet to minimise its total cost?