What is Structural Change? Structural change refers to a dramatic shift in the way an industry or market functions, usually brought on by major economic developments. Key Takeaways Structural change refers to dramatic shift in the way a country, industry, or market operates, usually brought on by major economic developments.The key to effect structural change
What Is a Structural Adjustment? A structural adjustment is a set of economic reforms that a country must adhere to in order to secure a loan from the International Monetary Fund and/or the World Bank. Structural adjustments are often a set of economic policies, including reducing government spending, opening to free trade, and so on.
What is a Structural Pivot A structural pivot is a price-bar formation common to technical analysis. It offers a market technician a real-time price signal of support and resistance. When a series of price bars reverse direction; it is considered a structural pivot (not a calculated pivot). The price bar has an open, high, low
What Is Structural Unemployment? Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an economy and exacerbated by extraneous factors such as technology, competition, and government policy. Structural unemployment occurs because workers lack the requisite job skills or live too far from regions where jobs are available and cannot move closer.
What Are Structured Funds? Structured funds are a type of fund that combines both equity and fixed-income products to provide investors with a degree of both capital protection and capital appreciation. These funds typically invest the majority of the portfolio in fixed-income securities to give the fund capital protection often with principal repayment and the
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
