What is the difference between project finance, structured finance and cooperate finance?
Structured finance involves products such as CDOs (collateralized debt obligations), structured mortgage products like Mortgage Backed Securities (MBS), CLOs (collateralized loan obligations), asset backed securities (credit card securitizations, auto lease securitizations etc). It’s a relatively quantitative field and, in fixed income, is built on the concept of securitization. You can securitize future cash flows of things such as mortgage payments, car payments, credit card payments, etc., present value them to today and cut the cashflows up into bonds and sell the bonds to investors. If you want more detail let me know.
