Structured Finance


DEFINITION of 'Structured Finance'

A service that generally involves highly complex financial transactions offered by many large financial institutions for companies with very unique financing needs. These financing needs usually don't match conventional financial products such as a loan.

BREAKING DOWN 'Structured Finance'

Structured finance has become a major segment in the financial industry since the mid-1980s. Collateralized bond obligations (CBOs), collateralized debt obligations (CDOs), syndicated loans and synthetic financial instruments are examples of structured financial instruments.

  1. Hybrid Security

    A security that combines two or more different financial instruments. ...
  2. Collateralized Debt Obligation ...

    An investment-grade security backed by a pool of bonds, loans ...
  3. Net Interest Margin Securities ...

    A security that allows holders to access excess cash flows from ...
  4. Securitization

    The process through which an issuer creates a financial instrument ...
  5. Collateralized Bond Obligation ...

    An investment-grade bond backed by a pool of junk bonds. Junk ...
  6. Syndicated Loan

    A loan offered by a group of lenders (called a syndicate) who ...
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