Off off B/S : good optics

From the often amusing Long or Short Capital:

The latest credit product is the new OFF-off-balance sheet provided by Private Equity Shop Y and Hedge Fund X. In exchange for below market financing, loose structural terms, and a 10-20% down payment, the off-off-balance sheet structure is designed to take an undiversified smorgasborg of the bank’s very own hung deals fresh from the bank’s books.

Recommendation: Being that off-off is a double negative, we think that maybe, just maybe, that selling loan assets to highly leveraged entities to which you provide the financing is more of a shell game than a credible solution.

Which is not to say that in terms of the optics, the accounting, and the regulatory capital it doesn't work really well. It's just the actual risk transfer part that's the issue.