This post is from a suggested group
Structured Finance and Securitization
Structured Finance is a specialized branch of finance that creates, manages, and distributes financial instruments designed to redistribute risk and transform assets into marketable securities. Its primary goal is not just to provide capital, but to engineer financial products that offer specific risk-return profiles tailored to investor demand.
I. The Core Mechanism: Securitization
Securitization is the process of converting assets—typically loans or receivables—into negotiable financial securities. It is the engine that drives structured finance.