Overview of Structured Products
Overview of structured products including advantages issuers and investors can receive from investing in these complex securities, risks that can arise, and recent regulatory changes.
Alternative Course:
Module 1: Size and Scope of the Market
- Identify mechanics of Structured Products
- Issuers' and investors' appetite for structured products
- Identify why issuers create structured products
- Understand investor interest in structured products
Module 2: Understanding the Asset Classes of Asset-Backed Securities
- Understand ABS ratings for a broad range of asset types:
- Revolving consumer assets (Credit Cards)
- Synthetic securities
- Operating assets
- Future flows
- Auto loans and leases
- Manufactored housing
- Student loans
Module 3: Commercial Mortgage-Backed Securities
- Commercial Mortgage-Backed Securities include:
- Conduit fusion
- Floating rate
- Single borrower
- CRE CDO backed by loans and commercial properties
Module 4: Residential Mortgage-Backed Securities
- Residential MBS covers a broad range of collateral-backed transactions:
- Covered bonds
- Prime jumbo
- Alternative A (Alt A)
- Subprime mortgage loans
Module 1: Role/Function:
- Special purpose vehicle
Module 2: Identify mechanics of
- Popular structured products
Module 3: Credit Enhancements
- Excess Spread
- Tranching
- Insurance
- Over-Collateralization
Module 4: Risk Modeling
- Basics of default dependence
- Role of rating agencies/ Ratings modeling
- CDO Risk measures