Fulcrum Security

In a corporate restructuring, the capital structure of the company is reorganized, often resulting in a part of debt securities being converted into equity.

The fulcrum security is the last security to recover less than par value under a capital restructure and is therefore the one most likely to be converted into equity.

As a result, the owner of the fulcrum security is also the party most likely to lead the restructuring of the company.

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