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Is that a common structure? Seems a bit odd to me to want a backer for the middle bit, but I suppose be so confident that it won't be worse than that that you'r
by OJFord 4y ago
Is that a common structure? Seems a bit odd to me to want a backer for the middle bit, but I suppose be so confident that it won't be worse than that that you're happy with the tail?
- ot 4y agoYes, every insurance works like that: deductible, then coverage, then you're on the hook again.
- OJFord 4y agoTrue! Good point. Assuming it's the same in this kind of deal as insurance I'm familiar with then, it's just.. yeah, ideally you wouldn't, but you can't get (well, I suppose there's a price..?) someone to take all your risk, so you just beat it down to some acceptable level that you can't imagine needing more than.
- Uvix 4y agoAlthough in this case, with the insurance agent being the one to push UBS to go through with the deal, I would have thought UBS could get better terms.