- The securitization of structured note portfolios is a key process in today’s global financial markets.
- These complex instruments combine fixed-income components with derivatives, providing investors with targeted exposure to a wide range of underlying assets.
Structured notes are complex financial instruments that combine a fixed-income component, typically a bond, with one or more derivatives, usually options.
Despite their advantages, these structures often face challenges related to distribution and liquidity. Therefore, securitizing them—transforming them into tradable products through a Special Purpose Vehicle (SPV)—opens the door to broader markets, optimizes capital, and enables more agile and transparent management.
In our guide Implementation of the Securitization of Structured Note Portfolios, we outline the specific characteristics of these financial instruments in detail.
Structured Notes and the Securitization Process
Securitization enables the packaging of structured note portfolios into standardized products, such as ETPs. This not only improves financial and operational efficiency but also separates the assets from the originator’s balance sheet, reducing legal and operational risks.
We also provide information on how to convert them into bankable assets through a securitization process carried out by FlexFunds.
As a preview, it’s important to know that the process involves creating a Special Purpose Vehicle (SPV), an independent legal entity that acquires the securitized assets and issues securities backed by them.
What Will You Find in Our Guide?
In this guide, you will also learn:
- The step-by-step process for securitizing structured notes and other financial assets.
- The challenges and key considerations involved in this effective financial procedure.
