Structured Finance

Companies with complicated funding demands, which are typically unsolvable with conventional financing, can use structured finance as a financial tool.

Structured finance is typically not available from traditional lenders.

Collateralized debt obligations and other structured financial products are not transferrable.

For complicated emerging markets, structured finance is being utilized to control risk and create financial markets. Structured finance is often recommended for borrowers, who are typically large organizations, who have very specific needs that cannot be met by a straightforward loan or another traditional financial instrument. Most of the time, structured finance calls for one or more discretionary transactions to be made; as a result, sophisticated and frequently dangerous instruments must be used.

Traditional lenders often do not provide structured financial solutions. Investors are typically required to supply structured finance since it is necessary for significant capital injection into a firm or organization. Unlike a regular loan, which can be transferred between different types of debt, structured financial products are nearly invariably non-transferable. Corporations, governments, and financial intermediaries are increasingly utilizing structured financing and securitization to control risk, build financial markets, broaden clientele, and create new funding instruments for complicated, developing, and emerging markets.