Who's paying the most for capital?

The capital raising frenzy that Wall Street embarked on this year has been nothing short of phenomenal, Breakingviews notes that the capital raises took various forms--"an elaborate concoction of preference shares, warrants, convertible bonds, ratchets, cap-and-collars and other innovative instruments, as well as issuing plain old equity." Every company has a unique set of circumstance, which results in different costs.

So who is paying the most? Breakingviews offers an interesting ranking that has Morgan Stanley at the top of the heap. It's paying 9 percent on $9 billion preferred shares bought by Mitsubishi UFJ. These shares convert into shares valued at $25.25 when the common hits $37.88. Assuming a 10 percent average annual stock gain a year, Morgan's effective rate would be 17 percent. Goldman is not far behind with its deal with Warren Buffet. Same goes for Barclays and its deal with Abu Dhabi and Qatar.

For more:
- here's the Breakingviews article