Fall 2003, Vol 28, No 3
Abstract: This paper provides background on the mezzanine finance market including changes in the first mortgage market that helped push the mezzanine market into greater prominence. We identify the primary situations in which mezzanine finance can play a role and discuss the risks and implications of extending mezzanine finance. We posit that examination of a borrower’s motivations for using mezzanine finance provides insight on risk for potential providers of capital.