Karan Bagga of Altius Finserv talks about Structured Finance

Finance, in general, encompasses various verticals. Debts, Securities, mortgages etc are the few common ones that we come across in our life normally. But if you are a business man, then you ought to know about a domain called ‘Structured Finance’. There is a bit of an irony here. The term structured finance in general connotations gives an idea of the conventional, organized finance that we deal with on normal basis. But in reality, structured finance is a ‘non-standard’ way of raising money. It is a very specific requirement and is tailor made from situation to situation, client to client. Altius Finserv Pvt Ltd. offers structured finance as one of its services.

Structured finance is provided to those clients whose have unique financing needs which extend beyond loans, debentures etc. Conventional financial products usually don’t suit these clients’ needs. What they require is a highly complex financial product, specially created for them. At Altius Finserv, structured finance involves carving intricate products after much careful observations and clear understanding of the needs.

Those who have half knowledge about structure finance would term that it requires manipulating the loopholes present in the tax laws. But the fact is that structured finance requires a deep knowledge of taxation and related laws. The analysts devise strategic ways to save economic expense for the clients by suggesting them fair but clever financial strategies to undertake. They try to explain and simplify the complex tax laws and allow clients to save money.

A few services offered by Altius Finserv Pvt. Ltd. under structured finance include Asset Backed Securities, Collateralized Debt Obligation, Convertible Bonds, Securitization, Assurance Contracts and Special Purpose Entity.