What Is a Structured Investment Products (SIPs)? Structured investment products, or SIPs, are types of investments that meet specific investor needs with a customized product mix. SIPs typically include the use of derivatives. They are often created by investment banks for hedge funds, organizations, or the retail client mass market. SIPs are distinct from a
What Is Structured Finance? Structured finance is a heavily involved financial instrument presented to large financial institutions or companies with complicated financing needs who are unsatisfied with conventional financial products. Since the mid-1980s, structured finance has become popular in the finance industry. Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated loans
What Is a Structured Note? A structured note is a debt obligation that also contains an embedded derivative component that adjusts the security’s risk-return profile. The return performance of a structured note will track both the underlying debt obligation and the derivative embedded within it. This type of note is a hybrid security that attempts
What Is a Structured Repackaged Asset-Backed Trust Security (STRATS)? A structured repackaged asset-backed trust security (STRATS) is a derivative product that pays an income stream to the holder based upon a trust’s interest in an asset-backed security (ABS) and a related derivative product. Key Takeaways A structured repackages asset-backed trust security (STRATS) is a securitized
What Is a Structured Transaction? A structured transaction is a series of transactions broken up from a larger sum in order to avoid reporting requirements under the Bank Secrecy Act (BSA), which requires financial institutions to report all transactions of $10,000 or more. Because of its usage, restructuring transactions (or layering) is a red flag
Stuart A. Miller is the Executive Chairman of Lennar Corporation and a member of its board of directors. He is co-chair of the Miami Dolphins Foundation, an organization devoted to providing education, health, youth athletic programs, and volunteer activities to communities throughout Florida. Key Takeaways Stuart A. Miller is the son of Lennar Corporation co-founder
What Is a Stub? In finance, a stub is a security that is created as a result of a corporate restructuring such as a spin-off, bankruptcy, or recapitalization in which a portion of a company’s equity is separated from the parent company’s stock. Stub stocks may also be created by converting a distressed company’s bonds
What Is a Stuckholder? A stuckholder is someone who is unable to sell a stock, particularly one that is losing value because the U.S. Securities Exchange Commission (SEC) has suspended trading on that stock. Key Takeaways A stuckholder is an investor unable to sell a stock, particularly one losing value because the U.S. Securities Exchange
What Is Student Debt? The term student debt refers to money owed on a loan taken out to pay for educational expenses. Individuals can borrow student debt through the government or private sources, such as banks and other lenders. Rapidly rising college tuition costs make student debt the only option for many students and their
What Is Student Loan Forgiveness? Student loan forgiveness releases borrowers from their obligation to repay part or all of their federal student loan debt. These borrowers have taken out loans to pay for their post-secondary education. Forgiveness is available for some types of loans, but the eligibility is limited to borrowers in certain public service, educational
