New Products Aid Corporate Finance

Paar, Randy
January 2002
Financial Executive;Jan/Feb2002, Vol. 18 Issue 1, p46
Academic Journal
The article discusses three classes of insurance products useful in the practice of corporate finance. Mergers and acquisitions (M&A) insurance indemnifies parties to a merger against losses arising from false representations of fact. Finite risk insurance can protect companies against severe adverse consequences stemming from liabilities of unknown scope or timing. Credit enhancement insurance provides firms with a way to recover when earnings fail to meet projections, and is apt to be a source of comfort to potential creditors..


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