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.
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.