Escrow Accounts in Structured Finance – The Holding Pattern with Purpose

If you’ve ever worked on a structured finance deal with more conditions than a teenager negotiating chores, chances are you’ve come across an escrow account. Quiet and dependable, they’re the financial equivalent of a waiting room – a safe spot for money to sit until everyone’s got their ducks in a row.

In this article, we’ll explain what escrow accounts are, why they’re used in structured finance and securitisation deals, who looks after them, and what to watch out for when putting one in place.