what are structurate instruments in finance?

Query by lia800: what are structurate instruments in finance?

Greatest answer:

Answer by NC
1st off, it is “structured,” not “structurate.” Second, there are numerous types of structured finance, and the only widespread thing amongst them is their uniqueness and complexity.

1 of the simplest structured instruments is a syndicated loan. A group of lenders band collectively to fund a single (generally big) loan the resulting loan contract has a lot of tiny print. Another reasonably easy structure is securitization (a bank might sell bonds backed by its mortgage portfolio, vehicle loan portfolio, or credit card receivables).

For a lot more info and examples, take a appear at the headlines of the Journal of Structured Finance:

http://www.iijournals.com/JPF/

Give your answer to this query beneath!

Q&A: a package of nontraded financial instruments can be transformed into a traded financial instrument through the

Question by sweetie pie: a package of nontraded financial instruments can be transformed into a traded financial instrument through the
process of?

a. collateralization
b. repurchasing
c. underwriting
d. securitization

Best answer:

Answer by MuaRung
d. securitization.

Securitization is the process of homogenizing and packaging financial instruments into a new fungible one. (Fungible means being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind.)

http://en.wikipedia.org/wiki/Securitization

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