Structured financing is a highly involved financial instrument offered to a large financial institutions or companies that have complex financing needs that doesn’t match with other financial products. Structured finance generally includes derivatives, securitized and collateralized debt instruments like syndicated loans, collateralized bonds obligations, collateralized debt obligations, hybrid securities, etc.

Significance and Benefits

Structured financial products are typically not offered to traditional lenders, because structured finance is required for major capital into a business or organizations, investors are required to provide such financing. Structured financing is non-transferrable.