In
investment banking
Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by und ...
, a structurer
[Joris Luyendijk (2012)]
Interview: Head of Structuring equity-derivatives
''theguardian.com''
is the
finance professional responsible for designing
structured products.
Their solution will typically deliver a bespoke
hedge,
"yield enhancement", or other feature,
as appropriate to the client's needs, and must inhere relevant regulatory and accounting considerations;
see .
The role is usually quantitative, straddling that of
sales and trading and
front-office quantitative analyst.
The structurer's main
analytic task is to determine how the
pay rules in question will distribute
cash flow
Cash flow, in general, refers to payments made into or out of a business, project, or financial product. It can also refer more specifically to a real or virtual movement of money.
*Cash flow, in its narrow sense, is a payment (in a currency), es ...
s for a deal;
to do so, they will typically
build computer models to
simulate these subsequent payments, thereby also estimating how
collateral payments affect the cash flows.
The above is preliminary to
deal settlement; thereafter it will be in the hands of the
Bond administration to apply the rules as described in the deal
legal document
Legal instrument is a legal term of art that is used for any formally executed written document that can be formally attributed to its author, records and formally expresses a legally enforceable act, process, or contractual duty, obligation, o ...
s.
References
Finance occupations
Financial analysts
Investment banking
Structured finance
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