Publication: Distressed Debt Investor - "Debt Decoupling - What Are the Implications?"
March 3, 2008
Our partner, Jon Kibbe, argues that the conflicts between capital marker risk-spreading and decoupling of ownership interests are not new, and contends that the resolution of the concerns raised by decoupling because of the dynamic growth of the credit derivatives market will likely be evolutionary. According to Kibbe, practical mitigants, such as prompt market-wide cash settlement following a credit event, will lessen the impact of post-default decoupled ownership interests more effectively than potential rules proposing additional disclosure.
