What are structured finance products?

Structured finance products include: Structured finance and its products are important. It provides the scaffolding and space for major borrowers needing a capital injection or alternative source of financing when other, more traditional borrowing options won’t work. Thank you for reading CFI’s guide on Structured Finance.

What are examples of structured finance instruments?

Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated loans are examples of structured finance instruments. Structured finance is a financial instrument available to companies with complex financing needs, which cannot be ordinarily solved with conventional financing.

Are structured financial products transferable?

Generally, because structured finance is required for major capital injection into a business or organization, investors are required to provide such financing. Structured financial products are almost always non-transferable, meaning that they cannot be shifted between various types of debt in the same way that a standard loan can.

How do structured products work?

Structured products are a collection of customizable investment products linked to a bond, single or multiple underlying assets, and financial instruments like securities, options, derivatives, commodities, indices, bonds, interest rates, or currency pairs linked to these assets.