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Adam Risell Quoted in Octus on the Reshaping of Structured Products
06.26.25
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Partner Adam Risell was quoted in an Octus article titled, “Liquidity Transformed: How Dealer Retrenchment Has Reshaped Structured Products,” which discussed how post-financial crisis regulations have reshaped structured product markets. When discussing how liquidity preferences have changed how investors approach the market, Adam explained, “As sponsors continue to face headwinds raising equity capital for structured products issuances, sponsors are turning to traditional high-yield fixed income investors such as hedge funds to fill the gap, many times in the form of a preferred equity investment.” He went on to further note, “This shrinks the requisite equity a sponsor needs to raise and many times sponsors can provide the equity funding themselves when utilizing a preferred tranche.”
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