Nothing new here. This "third thing" is mezzanine finance. Mezzanine finance sits between debt and equity in the capital structure and mezz investors choose a

Nothing new here. This "third thing" is mezzanine finance. Mezzanine finance sits between debt and equity in the capital structure and mezz investors choose a variety of risk/reward options making their investment more debt-like or more equity-like. The coupon stream on mezz notes can be linked to income on specific assets (like covered bonds). Subordinated debt and preferred shares are examples of mezz finance instruments.