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Re:Debt, equity and a third thing that might work better by huntse on Monday November 16, 2009 @11:22AM (#944656)
Nothing new here. This "third thing" is mezzanine finance. Mezzanine finance sits between debt and equity in the capital structure and mezz investors choose a variety of risk/reward options making their investment more debt-like or more equity-like.

The coupon stream on mezz notes can be linked to income on specific assets (like covered bonds).

Subordinated debt and preferred shares are examples of mezz finance instruments.

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