What&#039;s the difference between structuring, securitization and strat.?

acesyicf

Monkey

AC

11y

mxc:
Structuring is creating a product based on base components. E.g. create a structured note for a client which will pay some coupon depending on the level of the S&P 500. The note is basically unsecured funding + some kind of derivative. You price the note based on the components
Securitisation is repackaging, like taking many mortgages and creating one mortgage-backed security.

Strat not sure what you mean buddy

Thanks for your reply. The "Strat " I mean is Strategist

blackthorne

Orangutan

HF

11y

Above is correct. Strat can be anything, from market modeling to derivatives pricing. In this case its going to be someone who prices components of structured products, as well as any options/derivatives that are being used. Used a lot when a non standard product is being sold.

Assuming you're talking about the securitized products desk.

acesyicf

Monkey

AC

11y

blackthorne:
Above is correct. Strat can be anything, from market modeling to derivatives pricing. In this case its going to be someone who prices components of structured products, as well as any options/derivatives that are being used. Used a lot when a non standard product is being sold.
Assuming you're talking about the securitized products desk.

Does it mean Strat did modelling and pring the product that structurer creat? Why structurers do not price it themselves?

blackthorne

Orangutan

HF

11y

Best Response

acesyicf:
blackthorne:
Above is correct. Strat can be anything, from market modeling to derivatives pricing. In this case its going to be someone who prices components of structured products, as well as any options/derivatives that are being used. Used a lot when a non standard product is being sold.
Assuming you're talking about the securitized products desk.

Does it mean Strat did modelling and pring the product that structurer creat? Why structurers do not price it themselves?

From what I understand from my friends who work on securitzed products desks, yes if it its a non standard product. Some products are sold daily and the structurer can just feed inputs into the program. Other times they will sell a specific, new product to a company and the strat will price it.

Strats do mean different things at different places, however. They are on many desks and within many divisions.

acesyicf

Monkey

AC

11y

blackthorne:
acesyicf:
blackthorne:
Above is correct. Strat can be anything, from market modeling to derivatives pricing. In this case its going to be someone who prices components of structured products, as well as any options/derivatives that are being used. Used a lot when a non standard product is being sold.
Assuming you're talking about the securitized products desk.

Does it mean Strat did modelling and pring the product that structurer creat? Why structurers do not price it themselves?

From what I understand from my friends who work on securitzed products desks, yes if it its a non standard product. Some products are sold daily and the structurer can just feed inputs into the program. Other times they will sell a specific, new product to a company and the strat will price it.

Strats do mean different things at different places, however. They are on many desks and within many divisions.

Make Sense. Thank you.