In investment banking, a structurer
is the finance professional responsible for designing structured products.
Their solution will typically deliver a bespoke hedge, "yield enhancement", or other feature, as appropriate to the client's needs, and must inhere relevant regulatory and accounting considerations;
see .
The role is usually quantitative, straddling that of sales and trading and front-office quantitative analyst.
The structurer's main analytic task is to determine how the pay rules in question will distribute cash flows for a deal;
to do so, they will typically build computer models to simulate these subsequent payments, thereby also estimating how collateral payments affect the cash flows.
The above is preliminary to deal settlement; thereafter it will be in the hands of the Bond administration to apply the rules as described in the deal legal documents.
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Sales and trading is one of the primary front-office divisions of major investment banks. The term is typically reserved for the trading activities done by sell-side investment banks who are primarily engaged in making markets for institutional clients in various forms of securities. The trading floor of these banks will contain dedicated desks who generally focus exclusively on trading one form of security. These desks will more generally fall within the categories of fixed income, currencies, commodities, or equities.
Quantitative analysis is the use of mathematical and statistical methods in finance and investment management. Those working in the field are quantitative analysts (quants). Quants tend to specialize in specific areas which may include derivative structuring or pricing, risk management, investment management and other related finance occupations. The occupation is similar to those in industrial mathematics in other industries.
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project, or any other investment. Typically, then, financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a quantitative nature. It is about translating a set of hypotheses about the behavior of markets or agents into numerical predictions.