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  • Profile photo of polarispolaris
    Member
    @polaris
    Join Date: 2003
    Post Count: 12

    Hi all,

    What risk management controls are used as part of your deal structure to address the following risks:

    1. Increasing interest rates during contract period.

    2. Wrappe loses job and cannot pay or bolts.

    3. FMV at contract maturity is well below wrappers purchase price.

    4. In a lease option sandwich, the option writer dishonours your option to purchase. [:)]

    Some of the answers I expect to be obvious however, another persons methods may offer cleaner solutions.

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