Litigation Finance
What It Is
Capital provided to fund legal claims—including case costs, attorney fees, and portfolio funding—in exchange for a contractual share of settlement or judgment proceeds.
How Returns Happen
Cash flows are paid from settlements or judgments through a defined waterfall structure that prioritizes capital return and contracted returns.
Downside Matters
Best structured as diversified case portfolios with rigorous underwriting on legal merits, enforceability, expected timing, and defendant collectability. Single-case exposure dramatically increases binary risk.
Aircraft Leasing
What It Is
Ownership or financing of aircraft and engines leased to airline operators under long-term contracts with scheduled payment obligations.
How Returns Happen
Lease income provides credit-like cash flow when senior and secured, plus potential residual value recovery at end of lease or upon remarketing.
Downside Matters
Security is a mobile hard asset. Recovery requires enforceable repossession rights, realistic appraisals, conservative leverage ratios, and strong maintenance reserve controls. Liquidity in secondary markets varies by aircraft type and age.
Equipment Leasing
What It Is
Financing of essential-use equipment for businesses via lease contracts or sale-leaseback arrangements, secured by the underlying equipment assets.
How Returns Happen
Regular lease payments and contracted receivables, typically secured by a first-priority interest in mission-critical equipment that lessees depend on for operations.
Downside Matters
Defensive characteristics emerge when assets are truly essential to lessee operations, servicing capabilities are strong (collections infrastructure and remarketing expertise), and exposure is diversified across multiple lessees, equipment types, and end-market industries.
Inventory Financing
What It Is
Short-term credit secured by inventory (and often accounts receivable) using a borrowing base calculation that adjusts to collateral values in real time.
How Returns Happen
Interest income and facility spreads from revolving or term credit facilities. Often self-liquidating as inventory converts to receivables and then cash through the ordinary course of business.
Downside Matters
Safety depends on tight eligibility criteria, third-party verification of collateral, frequent field audits, margin call triggers, controlled bank accounts, and full cash dominion mechanisms that redirect proceeds during stress events.
Sports Private Credit
What It Is
Structured lending tied directly to team or league revenue streams—not speculative ownership stakes or equity participation in franchise appreciation.
How Returns Happen
Debt service paid from contracted or highly recurring income sources including media rights, sponsorship agreements, and ticketing/concession receivables, all routed through a senior cash waterfall.
Downside Matters
Defensiveness requires senior secured position, operating reserves, strict covenants controlling discretionary spending, and enforceable remedies. We explicitly avoid deals premised on "team value always goes up" narratives or uncontracted future appreciation.
Real Estate Private Credit
What It Is
Senior secured loans against income-producing or development properties (first lien position) for bridge financing, construction funding, or refinance situations.
How Returns Happen
Regular coupon or interest payments with principal repayment via property refinance, asset sale, or stabilized cash flow generation from operations.
Downside Matters
Driven entirely by LTV discipline, realistic takeout underwriting (not hope-based refinance assumptions), protective covenants, construction budget controls, and cash management agreements. Recovery tied directly to enforceable collateral value and well-documented remedies including foreclosure rights and receivership options.
Collectibles Private Credit
What It Is
Secured lending against high-value collectible assets including fine art, classic automobiles, rare watches, vintage wine, and other verifiable luxury goods with established secondary markets.
How Returns Happen
Regular interest payments with principal repayment via asset sale, refinance, or borrower cash flow. Collateral held in secure storage with insurance and regular valuation updates.
Downside Matters
Protection comes from conservative loan-to-value ratios (typically 40-60%), independent appraisals, established provenance documentation, liquid secondary markets, perfected security interests, and professional custody arrangements. Recovery path includes controlled sale through specialized auction houses or dealers with documented transaction history.
Boutique Hedge Funds
What It Is
Actively managed liquid strategies explicitly designed to control drawdowns and volatility versus traditional long-only equity exposure.
How Returns Happen
Alpha generation from long/short equity positions and G10 FX trading, combined with active hedging and dynamic net exposure management that adjusts to market conditions.
Downside Matters
Quality reveals itself through explicit risk limits (position sizing, sector concentration), volatility targeting frameworks, automated de-risk rules that reduce exposure in stress, concentration controls across strategies, and consistent transparent reporting—not just attractive performance during benign markets.
What BondSpy Is—and Isn't
What BondSpy Is
- Curated introductions to premium alternatives and select hedge funds
- Deal briefs highlighting structure, controls, and downside scenarios
- A consistent framework to compare opportunities quickly and objectively
What BondSpy Is Not
- An investment adviser or portfolio manager making decisions for you
- A substitute for your legal, tax, or financial advisors