The universe of distressed structured finance transactions includes deals backed by high yield, bank loans, corporate bonds, consumer receivables, debt obligations secured by corporate assets and hard assets including real estate. Due to the complex capital structure of structured finance transactions, Marathon conducts rigorous investment analyses to reverse engineer the transaction, thoroughly evaluate the collateral or assets that collateralize the transaction in order to evaluate the cash flow and degree of loss severity; with special attention to the indenture or documents that govern the transaction to assess the "waterfall" or priority provisions for each class; as all of these factors will effect the outcome of the investment.

Marathon's Structured Finance team sources, originates and structures transactions that include corporate loans, equipment leases and synthetic leases of commercial real estate and consumer loan transactions. The team's investment approach is built around the principles of prudent asset selection, portfolio diversification rules, disciplined risk management and on-going evaluation of credit risk. Therefore, a top-down macro and bottoms-up micro analysis approach is utilized to evaluate the credit risk profile of underlying assets, as well as structural cash flows of each transaction.