Can someone explain it like I am 5 what the difference is between structured finance vs leveraged finance vs asset finance? I am so confused the recruiters keep asking which one I prefer and how they are all different. I asked them to explain the difference and they weren't really sure either beyond structured finance means CDOs, leverage finance means taking on debt (duh!) and asset finance is a collateral based loan.

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Structured Finance - involves taking already made loans or similar products, securitizing them and selling them. Essentially, you take a bunch of loans and sell someone a "product" that will pay them x% for x amount of time collateralized by the underlying collateral. High volume practice with very specific niche.

Leveraged Finance - usually representing lenders in lending for lbos to private equity funds for their purchases of companies. Very fast moving and not know for wlb at all.

Asset Finance - lending for specific assets using those assets as collateral. While this could technically include real estate, protect finance, etc. It's usually used to refer to either a niche based type of practice such as aviation finance (lending for planes using the planes as collateral) or ABL loans.

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Great explanation! Thank you

Your mommy and daddy give you $10 to open up a lemonade stand…

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A2. Thank you. Sorry it took me a day to digest your info (your writing is super clear, its just that I have no knowledge in this area). I didn't realize leveraged finance was also secured. I thought only asset finance was secured, but I guess leveraged finance is broader in the sense that the collateral isn't the actual asset you are financing but something else.

When you say any transacational work is fungible, does that include any non-finance transacational work? I am a junior with other transacational experience so that would be to my advantage since I want to do finance. Fuinnly enough my recruiter pinged me this morning asking if I want "project finance" but I think I may not use this recruiter anymore since the recruiter doesnt seem to know anything about finance

They should be sending you the bio of someone you'd be working with, or at least a job description. Each firm has different terms, so there's no use in generalizing

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...what?

Structured finance tends to be asset backed securities or mortgage backed securities. Firms well known/regarded in structured finance include Mayer Brown and CWT. You can check out summaries of the practice on their websites

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The problem with trying to answer this here is it'll be impossible to interview as a lateral armed with only a couple of bullet points. Did you do anything finance or even transactional at all?

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Are you a junior (first or second year) transactional attorney looking to lateral? I’m not clear how you would practice, or why you’d want to practice, in a securitization group, PE/hedge fund group or financial institutions group without knowledge of the nature of the work.

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If I had to guess I'd bet OP is a laid off junior from Gunderson or Cooley and due to low hours has practically speaking no experience.

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