No, they have a different risk-reward structure. They finance those firms that probably cannot issue debt. They take equity for their funding. That's what paren

No, they have a different risk-reward structure. They finance those firms that probably cannot issue debt. They take equity for their funding. That's what parent is saying. Once you are in the league of issuing debt, you probably want to. Since it suggests that you are deemed to be an adequate counterparty. A small chance of default wreaks havocs on nominal interest rates.