Portal:Structured finance

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Structured finance rating methods

• Structured Finance Wikirating Index (SFWI)

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Types

There are several main types of structured finance instruments:

Asset-backed securities (ABS)

• Asset-backed securities are bonds or notes based on pools of assets or collateralized by the cash flows from a specific pool of underlying assets.

Mortgage-backed securities (MBS)

• Mortgage-backed securities are asset-backed securities, the cash flows from which are backed by the principal and interest payments of a set of mortgage loans.
  • Residential mortgage-backed securities deal with residential homes, usually single family.
  • Commercial mortgage-backed securities are for commercial real estate, such as malls or office complexes.
  • Collateralized mortgage obligations are securitizations of mortgage-backed securities.

Collateralized debt obligations (CDOs)

• Collateralized debt obligations consolidate a group of fixed-income assets, such as high-yield debt or asset-backed securities, into a pool, which is then divided into various tranches.
  • Collateralized bond obligations (CBOs) are collaterized debt obligations backed primarily by corporate bonds.
  • Collateralized loan obligations (CLOs) are collaterized debt obligations backed primarily by leveraged bank loans.
  • Commercial real estate collateralized debt obligations are collaterized debt obligations backed primarily by commercial real estate loans and bonds.

Other structured products

• Credit derivatives are contracts to transfer the risk of the total return on a credit asset falling below an agreed level, without transfer of the underlying asset.
• Collateralized fund obligations (CFOs) are securitizations of private equity and hedge fund assets.
• Partial guaranteed structures
• Future flow transactions
• Loan sell offs