Corporate Capitalization Consolidated Capitalization Proportionate Capitalization Cash and Financial Assets 2013 ANNUAL REPORT 51 Proportionate consolidation, which reflects our proportionate interest in the underlying entities, depicts the extent to which our  underlying assets are leveraged, which we believe is an important component of enhancing shareholder returns. We believe that  the levels of debt relative to total capitalization are appropriate given the high quality of the assets, the stability of the associated  cash flows and the level of financings that assets of this nature typically support, as well as our liquidity profile.  Our proportionate share of non-recourse borrowings and accounts payable and other liabilities declined since 2012  primarily as a result of lower exchange rates on liabilities denominated in non-U.S. dollar currencies and the distribution of a  7.6% interest in Brookfield Property Partners, which holds the vast majority of our commercial property operations, including  the associated debt. The following table presents our cash and financial assets on a consolidated and corporate (i.e., deconsolidated) basis. Common and preferred equity totals $21 billion and represents 80% of our corporate capitalization. The average term to maturity  of our corporate debt is eight years. Our corporate (deconsolidated) capitalization shows the amount of debt that is recourse to the Corporation, and the extent to  which it is supported by our common equity and remitted cash flows. Corporate borrowings increased by $449 million as a result  of retained cash flow, asset monetizations and financing activities. We completed five corporate bond issues during the year for  total proceeds of C$980 million and used the proceeds in part to redeem higher cost debt. These activities reduced the average  coupon to 4.5%. The average term of our corporate term debt is eight years. Preferred equity increased by $197 million, reflecting  the issuance of C$200 million, 4.90% perpetual preferred shares. The proceeds were used in part to redeem C$150 million of  capital securities with an average rate 5.0%. Our strategy is to maintain a relatively low level of debt at the parent company  level and finance our operations primarily at the asset or operating unit level with no recourse to the Corporation. Subsidiary  borrowings included in our corporate capitalization are contingent swap accruals issued by a subsidiary that were guaranteed by  the Corporation and were settled during 2013. The increase in consolidated borrowings primarily reflects the assumption of non-recourse asset specific borrowings on newly  acquired or consolidated assets and businesses.  We note that in many cases our consolidated capitalization includes 100% of the debt of the consolidated entities, even  though in most cases we only own a portion of the entity and therefore our pro rata exposure to this debt is much lower.  In other cases, this basis of presentation excludes some or all of the debt of partially owned entities that are equity accounted or  proportionately consolidated, such as our investment in General Growth Properties and several of our infrastructure businesses. Consolidated capitalization reflects the full consolidation of wholly owned and partially owned entities.  Consolidated Corporate AS AT AND FOR THE YEARS ENDED DECEMBER 31 (MILLIONS) 2013 2012 2013 2012 Financial assets Government bonds  $ 179 $ 178 $ 141 $ 137 Corporate bonds and other  498 344 303 380 Preferred shares  33 39 18 297 Common shares  2,758 2,034 730 690 Loans receivable/deposits  1,479 516 43 40 Total financial assets  4,947 3,111 1,235 1,544 Cash and cash equivalents  3,663 2,850 361 175 $ 8,610 $ 5,961 $ 1,596 $ 1,719