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All of the stock data sites have very high debt to equity ratios for BLX, something approaching 275%. I know that banks don't fit well into the same models that work for 'bricks and mortar' companies, but is this something to be concerned about? (for comparison, another GG 'best buy' Novartis has a debt / equity ration of about 25%, one-tenth of BLX, and as we all know, almost all of the noodle shops have a debt/equity ratio of 0.00%))
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No. of Recommendations: 2
<<All of the stock data sites have very high debt to equity ratios for BLX, something approaching 275%. I know that banks don't fit well into the same models that work for 'bricks and mortar' companies>>

This isn't something to worry about. The bank's Tier 1 equity ratio is almost 25% which is ridiculously high for a bank and it is trading below book value, which provides a pretty nice margin of safety, especially for a bank with such short-term loans.

The leverage (assets/equity) is under 6x, again good for a bank. Management is looking to increase this as trade activity picks up, but it shouldn't be a problem given the conservative nature of the business.
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