roles in a structured product We have mentioned some of the players involved in structured product. Let's round out this discussion with a more complete look at the stakeholders.

The SPV is established by a sponsor, which is typically a bank or investment firm that also invests in the equity piece of that vehicle investors will invest in the debt and the equity of the structured product. The sponsor must also hire a collateral manager to begin the warehousing and managing of the assets.

The rating agencies will play a critical role in rating the tranches of the debt based on the assets that the manager has purchased.

Lastly the sponsor will appoint a trustee which is responsible for receiving the cash from the assets and then Distributing that cash to the investors.