Structured finance

{
  "id": "MLC-T-INS-003212",
  "term": "Structured finance",
  "field": "Insurance and risk management",
  "definition": "A complex financial instrument or arrangement tailored to meet specific risk and return objectives that are not achievable with standard financial products. It involves pooling assets, such as mortgages or other loans, and then issuing securities backed by the cash flows from that pool. These securities are divided into tranches, each with a different level of credit risk and corresponding expected return, governed by a priority of payments.",
  "url": "https://mlchart.com/terminology/insurance/structured-finance/"
}