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Double dip transaction

 A double dip transaction is a financial arrangement through which it is possible to generate liquidity for companies already facing financial difficulties. With a double dip transaction, a company creates its own subsidiary with the sole purpose of raising funds trough a bond issuance. The proceeds of the bond loan are then lent to the parent company in the form of a guaranteed loan (i.e. the parent company provides its assets as collateral), thus generating different rights of recourse over the same collateral. The double dip transaction must be permitted by pre-existing  bond contracts and loans. 

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