what is structured finance 
structured finance is a heavily involved financial instrument presented to large financial institutions or companies with complicated financing needs that are unsatisfied with conventional financial products since the mid 1980s structured finance has become popular in the finance industry collateralized debt obligations cdos synthetic financial instruments collateralized bond obligations cbos and syndicated loans are examples of structured finance instruments michela buttignol investopediaunderstanding structured financestructured finance is typically indicated for borrowers mostly extensive corporations that have highly specified needs that a simple loan or another conventional financial instrument will not satisfy in most cases structured finance involves one or several discretionary transactions to be completed as a result evolved and often risky instruments must be implemented benefits of structured financestructured financial products are typically not offered by traditional lenders generally because structured finance is required for major capital injection into a business or organization investors are required to provide such financing structured financial products are almost always nontransferable meaning that they cannot be shifted between various types of debt in the same way that a standard loan can increasingly structured financing and securitization are used by corporations governments and financial intermediaries to manage risk develop financial markets expand business reach and design new funding instruments for advancing evolving and complex emerging markets for these entities using structured financing transforms cash flows and reshapes the liquidity of financial portfolios in part by transferring risk from sellers to buyers of the structured products structured finance mechanisms have also been used to help financial institutions remove specific assets from their balance sheets examples of structured finance products