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2005•˜The œjournal of structured financeRequires access

The Definition of Structured Finance

Henry A. Davis

Open publisher page 23 citations

Abstract

This article summarizes a survey of 23 experts on the definition of structured finance. In today9s usage, structured finance is a broad term. It can be defined in many ways such as a synthetic transaction that transfers risk; a financing transaction where legal structures are used to isolate asset or entity risk, resulting in decreased risk for the originator; or the monetization of any rights to payments by a party having the legal right to transfer those payments to others. Clearly within the scope of structured finance is securitization, including widely used instruments such as asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and collateralized debt obligations (CDOs). Most respondents would include credit derivatives as well, and most take a broad, inclusive view of structured finance that includes project finance, the use of derivatives, complex leasing transactions, and various other structured risk transfer mechanisms.

About this research paper

What this paper is about

This article summarizes a survey of 23 experts on the definition of structured finance. In today9s usage, structured finance is a broad term. It can be defined in many ways such as a synthetic transaction that transfers risk; a financing transaction where legal structures are used to isolate asset or entity risk, resulting in decreased risk for the originator; or the monetization of any rights to payments by a party having the legal right to transfer those payments to others. Clearly within the scope of structured finance is securitization, including widely used instruments such as asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and collateralized debt obligations (CDOs). Most respondents would include credit derivatives as well, and most take a broad, inclusive view of structured finance that includes project finance, the use of derivatives, complex leasing transactions, and various other structured risk transfer mechanisms.

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OpenAlex reports 23 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This article summarizes a survey of 23 experts on the definition of structured finance. In today9s usage, structured finance is a broad term. It can be defined in many ways such as a synthetic transaction that transfers risk; a financing transaction where legal structures are used to isolate asset or entity risk, resulting in decreased risk for the originator; or the monetization of any rights to payments by a party having the legal right to transfer those payments to others. Clearly within the scope of structured finance is securitization, including widely used instruments such as asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and collateralized debt obligations (CDOs). Most respondents would include credit derivatives as well, and most take a broad, inclusive view of structured finance that includes project finance, the use of derivatives, complex leasing transactions, and various other structured risk transfer mechanisms.

Key concepts: Structured finance, Securitization, Collateralized debt obligation, Business, Finance, Payment, Database transaction, Scope (computer science)

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