Structured Finance Solutions
Harvest finance Structured Finance team leverages its expertise in the capital markets to offer innovative and multi-faceted structured financing solutions across various asset classes. We offer solutions that include:
- Project Finance and Monetization Solutions with creative and flexible strategies to accommodate the specific needs of clients
- A global presence in Europe, the Americas and Asia-Pacific
- Relationships with bulge bracket banks as well as regional boutique banks and off shore trusts
- Direct relationships with investors
What is Structured Finance?
These days it is more difficult to define because Structured Finance groups vary greatly depending on the size and location of the bank so you can’t apply an exact set definition like you could for other form of finance. Basically the term “Structured Finance” is a reference to multiple products and concepts including Fixed Income products, mortgage-backed securities (MBS), and asset-backed securities (ABS).
With Structured Finance harvest finance can use tools like Credit Enhancement in order to close the gap between a company’s corporate rating and an A or sometimes even a AAA rating.
An asset-backed security is a security whose value and payments are derived from and backed by a pool of underlying assets or investors such as mortgage loans, auto loans, student loans, or Bank Instruments for example.
In Structured Finance these securities are secured and backed by collateral or instruments, meaning they are different from unsecured products and solutions. Harvest finance helps provide project finance and credit enhancement using Structured Finance. We help companies raise capital though credit enhancement.
Who uses Structured Financing?
Harvest finance works with companies and organizations from all types of industries and across the entire credit spectrum. We generally work with import and export companies, movie production companies, auto, credit and student loan companies, local governments, and oil trade, because Bank Instruments are well-aligned with their business models as they have pre-established stable cash flows.
Those are the most common types of companies we work with, however you can securitize cash flows for almost anything with a fixed cash flow.
It all boils down to the stability of the cash flows and how appealing we can make it look. Most application that are not approved fall short because the company or organization does not have the initial investment money needed to secure the instrument.