Introduction
Non-recourse financing has been a real money-spinner for banks in the past few years. A market dominated by Deutsche Bank initially, a number of other dealers have now got into the act. The concept itself is straightforward: a bank lends money to a company based on collateral, usually cash or shares, posted by the borrower. If the value of the collateral drops below a certain level, additional margin has to be posted by the borrower, otherwise the lender sells the shares to repay the loan
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