Recovery value is an advisory service offered with the objective of assisting clients in recovering or limiting potential losses arising from financial products.
Thanks to a multidisciplinary approach, the dedicated team at Eidos Partners is able to assist its clients by offering competence and experience in equity capital markets as well as technical expertise in financial engineering complemented by an in-depth knowledge of the related legal frameworks.
The financial instruments that can be subject to recovery value can be:
- Interest rate swaps of a company (typically hedging a senior loan or other financing structures)
- Structured bonds with exotic options held by an institutional investor
- Principal protected structure that has lost its financial value
- insurance policies and structured securities
- Bonds or derivatives issued by distressed companies
Eidos Partners is able to select and effectively implement the best solution depending on the complexity of the transaction. This activity can lead to a review of the contractual clauses, the settlement of the derivative product or the beginning of a legal action to rebalance the mark-to-market and recover losses deriving from investments deemed inappropriate with respect to the original risk profile of the investor.