In doing research on blended finance and especially Debt-for-Nature Swaps, one question has come up repeatedly. In the event of bankruptcy - who ends up owning the collateral? And this is a really, really important question, because those blended finance constructs are similar in creation to those CDOs crashing in 2008, taking out all mezzanine investments. Except,
Collateral
Collateral
Collateral
In doing research on blended finance and especially Debt-for-Nature Swaps, one question has come up repeatedly. In the event of bankruptcy - who ends up owning the collateral? And this is a really, really important question, because those blended finance constructs are similar in creation to those CDOs crashing in 2008, taking out all mezzanine investments. Except,