Brian S. Fraser, H. Rowan Gaither IV, Jon Kibbe, Julia Lu Fu, Michael Friedman, Publications
Memorandum: Equity and Debt Decoupling: Derivative Instruments Challenge Fundamental Assumptions of Corporate and Bankruptcy Law
June 13, 2008
The rapid growth in derivatives as hedging instruments, particularly through equity swaps, credit default swaps and loan credit default swaps, has challenged fundamental assumptions underlying corporate, federal shareholder disclosure and bankruptcy law. In the attached memorandum, our colleagues Jon Kibbe, Brian S. Fraser, Michael Friedman, H. Rowan Gaither IV and Julia Lu Fu discuss the recent phenomena of "equity decoupling" and "debt decoupling" through the use of derivatives and the challenges equity and debt decoupling pose for today's business environment.
