What does a structured finance lawyer do?
Expert Structured Finance Law Firm The Structured Finance team specialises in providing advice for a broad range of participants in structured finance transactions, including banks, bridging funders, funds, investors, issuers, originators and arrangers.
What does a Securitisation lawyer do?
DR: Associates on the securitization team advise clients on regulations relating to securitization transactions, which include US risk retention rules, the Volcker rule and Regulation AB. Additionally, associates help draft transaction documents for companies that are looking to securitize their assets.
What is structured finance and securitization?
In structured finance, banks and other lenders make loans. They take those loans, turn them into bonds or other securities and sell them to investors. Securitization – which is really a synonym for structured finance – finances car loans, credit card loans, home loans, equipment loans, small business loans, and more.
Is structured finance a good career?
Structured finance jobs are highly beneficial to those who have a solid blend of the spreadsheet, accounting, and legal skills. While considering them, you need to know well as to how the economy has been performing and how the structured finance market is doing as a whole.
Are derivatives legal?
Fourth, derivatives traditionally are regulated not through heavy-handed bans on trading, but through common-law contract rules that protect and enforce derivatives that are used for hedging purposes, while declaring purely speculative derivative contracts to be legally unenforceable wagers.
Are MBS structured products?
Securitization, much like structured finance, promotes liquidity and is used to develop the structured financial products used by qualified businesses and other customers. Mortgage-backed securities (MBS) a model example of securitization and its risk-transferring utility.
Who uses structured finance?
Structured finance is typically indicated for borrowers—mostly extensive corporations—who have highly specified needs that a simple loan or another conventional financial instrument will not satisfy.
What is structuring in finance?
Generally speaking, structuring is the act of breaking up financial transactions to get around the federal reporting requirements that kick in for transactions over a specific amount of money.
Is structured finance fixed income?
When analyzed and utilized correctly, structured credit can be a useful fixed-income allocation regardless of market environment, due in part to its complexity premium, floating interest rates, improved liquidity and diversification.
Why do I want to work in structured finance?
Structured finance deals with financial lending instruments that work to mitigate serious risks related to complex assets. However, borrowers with greater needs, such as corporations, seek structured finance to deal with complex and unique financial instruments and arrangements to satisfy substantial financial needs.
Can I trade derivatives?
Derivatives can be bought or sold in two ways—over-the-counter (OTC) or on an exchange. There is counterparty risk when trading over the counter because contracts are unregulated, while exchange derivatives are not subject to this risk due to clearing houses acting as intermediaries.