[vinceguidry]

You didn’t seem to grasp parent’s point. Debt and equity aren’t apples and oranges, they’re Fuji and Honeycrisp. What makes debt attractive as a lender is recourse, taking that away removes the incentive to lend without other reasons, reasons which invariably look a lot like the ones you would employ in the decision making process to take an equity stake.

[parenthesis]

Yes, debt and equity shade into each other with things like preference shares and convertible bonds.