PT  - JOURNAL ARTICLE
AU  - Henry A. Davis
TI  - The Definition of Structured Finance
AID  - 10.3905/jsf.2005.598316
DP  - 2005 Oct 31
TA  - The Journal of Structured Finance
PG  - 5--10
VI  - 11
IP  - 3
4099  - https://pm-research.com/content/11/3/5.short
4100  - https://pm-research.com/content/11/3/5.full
AB  - This article summarizes a survey of 23 experts on the definition of structured finance. In today's 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.