Case Studies

Time Piece Legacy

Preserve and Protect: How Coastal Bridge Advisors kept our client’s wealth safe from exposure

Our creative problem solving allowed a former Fortune 100 president to preserve his wealth while unforeseen challenges threatened the company holding his deferred-compensation plan.

Our client, the former President of a Fortune 100 Company, had 80% of his wealth tied up in a ten-year payout deferred-compensation plan. Following our analysis, we made him aware of his exposure as an unsecured creditor of his former employer.

Coastal Bridge Advisors’s independence and Wall Street relationships help preserve client’s wealth

To protect his net worth, we looked at traditional hedging techniques, such as protective puts and shorting the position. However, these options were prohibitively expensive.

Instead, we proposed the purchase of a credit default swap against a materially adverse event occurring at the Company.  Benefiting from our independence and longstanding Wall Street relationships, we were able to competitively bid the trade to several banks. Ultimately, we negotiated the transaction for a fraction of the customary cost.

As company stock plummeted, client’s peace of mind is preserved

Soon after we executed the transaction, the Company was severely impacted by two major natural disasters and a security breach, which drove the stock down by 70% and its bond rating from AAA to BBB.  Through our creative problem solving, we preserved our client’s wealth and peace of mind and enabled him to pursue a new, and highly successful, independent business venture.