Beyond Traditional Debt Instruments: Credit Instruments Innovations

Frank J. Fabozzi

Chapter 5 in Credit Market Innovations:How Institutions, Technology, and Regulation Are Reshaping Global Lending, 2026, pp 145-174 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:Introduction: The Evolution and Complexity of Credit Instrument InnovationsThe Evolution of Credit Instruments: A Historical PerspectiveOverview of Financial Innovation in Credit InstrumentsStructured Credit InstrumentsSecuritized Products vs. Structured Products: A Distinction in Credit InnovationSecuritized Products: Transforming Illiquid Assets into Tradable SecuritiesStructured Products: Custom-Engineered Credit InstrumentsKey differences and market rolesSecuritization Process and Securitized ProductsThe securitization processSecuritized productsAsset-backed securitiesResidential mortgage-backed securitiesCommercial mortgage-backed securitiesCollateralized debt obligationsStructured productsSpeculative-Grade Credit InstrumentsHybrid Credit InstrumentsConvertible bondsExchangeable bondsBonds with equity warrantsEquity-linked notesPrincipal-protected notesFuture Trends in Credit InstrumentsSummary

Keywords: Credit; Innovation; Lending; Technology; Regulation; Risk; Institutions; Markets; Credit Risk; Securitization; Credit Scoring; Fintech; Private Credit; Structured Finance; Credit Instruments; Blockchain; Artificial Intelligence; Machine Learning; Stress Testing; Risk Models; Debt Markets; Digital Lending; Central Banks; Financial Regulation; Credit Cycles; Institutional Investors; Capital Markets; Credit Products; Legal Innovation; Market Structure; ESG; Macroprudential; Asset-backed Securities; CLOs; Credit Analytics; Big Data; Data Privacy; Financial Technology; Underwriting; Alternative Data; Credit Access; Risk Management; Credit Derivatives; Distributed Ledger; Tokenization; DeFi; Credit Enhancement; Yield Curves; Credit Spreads; Default Risk; Credit Innovation; Loan Syndication; Legal Frameworks; Compliance; Basel III; Systemic Risk; Lending Platforms; SME Lending; Consumer Credit; Mortgage-backed Securities; Securitized Products; Credit Performance; Credit Transformation; Credit Monitoring; Algorithmic Lending; Digital Identity; Financial Inclusion; Credit Exposure; Peer-to-peer Lending; Nonbank Lenders; Financial Infrastructure; Payment Systems; Real-time Data; Financial Resilience; Geopolitical Risk; Regulatory Arbitrage; Collateral; Capital Requirements; Loan Origination; Portfolio Risk; Operational Risk; Credit Risk Transfer; Data Analytics; Transparency; Investor Protection; Risk-adjusted Returns; Rating Agencies; Credit Default Swaps; Legal Risk; Structured Credit; Lending Innovation; Compliance Tech; Stress Scenarios; AI Credit Modeling; Privacy Laws; Quant Credit Models; Credit Policy; Regulatory Innovation; Market Transparency; Cyber Risk; Default Models (search for similar items in EconPapers)
JEL-codes: D82 G21 G28 G32 O33 (search for similar items in EconPapers)
Date: 2026
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