What's the difference between structuring, securitization and strat.?

I am confused about the three roles : structuring, securitization and strat.

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Comments (7)

Jan 15, 2013

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

Jan 16, 2013
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

Jan 16, 2013

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.

Jan 16, 2013
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?

Jan 16, 2013
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.

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Jan 16, 2013
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.

Jan 15, 2013