Structured finance rating methods
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.
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
- Wikipedia - Structured finance
- Wikipedia - Asset-backed securities
- Wikipedia - Mortgage-backed securities
- Wikipedia - Collateralized mortgage obligations
- Wikipedia - Collateralized debt obligations
- Wikipedia - Collateralized bond obligations
- Wikipedia - Collateralized loan obligations
- Wikipedia - Commercial real estate collateralized debt obligations
- Wikipedia - Credit derivatives
- Wikipedia - Collateralized fund obligations