Structured Finance and Capital Markets
Waystone delivers a comprehensive and high-quality structured finance solutions for transactions across the globe.
Our specialist team has a particular focus on complex and bespoke structured finance transactions across all asset classes.
Waystone’s structured finance clients include:
- asset managers
- large banks
- boutique investment firms
- investment banks
- funds and private equity firms
Waystone provides structured finance services including:
- Special Purpose Vehicle (SPV) incorporation
- management and administration of SPV
- company secretarial services
- provision of registered office
- corporate accounting services including bookkeeping, taxation, and reporting
- share/security trustee
- bank account and payment management services
- waterfall calculation agent
- registrar and paying agent (to unlisted notes
- treasury services
- lease and loan administrator
- contracts management assistance
Waystone’s unique and trusted structured finance services are operated using a relationship manager model and are supported by an expert servicing team. Your relationship manager is your single point of contact for all matters. Our servicing team is given full exposure to the life cycle of the deal and is therefore fully aware of all financial transaction operations.
Structured finance instruments we support
At Waystone, we support a wide range of structures and structured finance products and transactions including:
- Collateralized Loan Obligations (CLOs)
- Collateralized Debt Obligations (CDOs)
- debt securities
- repack notes
- holding companies
- loan origination
- asset-backed securities
- private debt and direct lending
- asset-backed commercial paper
- mortgage-backed security including MBS/RMBS/CMBS
- green bonds
- hybrid securities
- structured repos
- secured notes
- structured credit funds
- Mid-Term Note (MTN) programmes
- pass through securities
- Non-performing loans (NPLs)
- trade receivables securitisation
- invoice factoring
- Sharia-compliant transactions.
How Waystone can help
If you’re looking for a partner who can help you navigate the complex world of structured finance, our team has the expertise to deliver customized solutions that meet the specific needs of your organisation.
To learn more about our structured finance and capital markets services, get in touch with our Corporate Services Solutions team today.
Structured Finance is a method of financing in which complex financial instruments are used to pool and distribute risk. These instruments often involve the creation of specialized entities called special purpose vehicles (SPVs), which hold and manage the assets used to secure financing.
The goal of structured finance is to transfer risk from one party to another and to provide access to capital for a variety of investment opportunities.
The benefits of structured finance products include:
- Access to new sources of capital
- Mitigate risk for borrowers and investors
- Customized financing arrangements
- Provide liquidity to investors
Given the complexity associated with structured finance, regulatory bodies often closely monitor these transactions. Regulators may set specific guidelines or requirements to ensure proper risk disclosure, transparency, and investor protection. The implementation of regulations can vary depending on the country or region and may impact the structuring and marketing of structured finance products.
Some common examples of structured finance products include collateralized debt obligations (CDOs), asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized loan obligations (CLOs).
CLOs (Collateralized Loan Obligations) and CDOs (Collateralized Debt Obligations) are both types of structured finance products, but they differ in their underlying assets and risk profiles. CLOs primarily consist of pools of loans, typically senior secured corporate loans, which are considered to have lower risk due to collateral backing. CDOs, on the other hand, are more diverse and can include various debt instruments, making them more complex.
Yes, there is liquidity in the structured finance market and most issuers offer liquidity during the life of the investment. Structured finance instruments, such as CLOs, are often traded in secondary markets, providing investors with opportunities to buy and sell these securities. The level of liquidity can vary depending on the specific type of structured product, market conditions, and investor demand.
Securitisation is a fundamental aspect of structured finance. It involves transforming illiquid assets, such as loans or receivables, into marketable securities. The process starts with a financial institution (the originator) bundling a pool of these assets together. These assets then serve as collateral for the newly created securities. The securities are typically sold to investors, with the cash flows generated from the underlying assets used to pay interest and principal to the investors.