Structured finance is a specialized area of finance that involves the creation of complex financial instruments by pooling various financial assets and using them as collateral to support the issuance of securities or investment products. It is a way to transform illiquid assets into tradable securities, allowing investors to gain exposure to a diverse range of risks and returns. The primary objective of structured finance is to provide customized funding solutions and risk management tools for both issuers and investors. It is commonly used in situations where traditional financing methods may not be suitable or available. Structured finance can be applied to a wide range of assets, including mortgages, loans, credit card receivables, auto loans, and even non-financial assets such as intellectual property rights.