Structured finance is a financial instrument whereby an asset,
such as a bond, or a pool of assets, such as residential mortgages,
credit card repayments or corporate loans, are repackaged into
notes and sold to investors. The cashflow generated from these
underlying assets will be used to repay the notes issued to
investors. Swap instruments may also be used to customise bespoke
interest rates, currency and repayment dates based on the
investors' requirements.
securitisation in the prc
The structured finance market in the region continues to be
relatively new in comparison to the European market and certainly
in comparison to the North American market. Nevertheless over the
last few years, there has been a marked upward trend in the region,
particularly in the PRC. With the tightening of liquidity and
credit controls in the PRC, banks and financial institutions are
looking for ways to reduce its existing credit exposure by moving
any existing loans off their
