Purpose of the Pillar Page
This page must do five things simultaneously:
1. Define “structure” from first principles, not jargon.
2. Separate business risk from structural strength cleanly.
3. Introduce the 6 structure blocks as a usable mental model.
4. Anchor everything to recovery and haircut, not prevention of default.
5. Act as the navigation hub for all deeper posts and tools.
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Detailed Section-by-Section Outline
1. Opening: Why “Structure” Is So Often Misunderstood
Objective: Reset the reader’s mental model.
Key points:
“Structure” is used loosely in banking and investing.
It is often confused with business quality or riskiness.
A strong structure does not make a weak business strong.
It determines what happens after the business fails to perform.
SEO keywords naturally embedded:
financial structure
banking structure
credit structure
capital structure vs collateral
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2. Business Risk vs Structure Strength (Foundational Distinction)
This is the most important section.
Explain clearly:
Business risk affects future cash flow and asset values.
Structure does not change those risks.
Structure determines how losses are allocated when those risks materialise.
Explicit statement:
> Higher business risk requires stronger structure if recovery is to be preserved.
Introduce PD and LGD only conceptually, not mathematically:
Probability of default comes from the business.
Loss given default is shaped by structure.
Link forward:
“The rest of this page explains what structure actually consists of.”
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3. What “Structure Strength” Really Means in Practice
Define structure strength in plain language:
Lower haircut on deployed capital.
Faster and more certain recovery.
Less value leakage before enforcement.
Introduce the idea:
Two deals with the same business risk can have very different outcomes because of structure.
Simple illustrative example (no numbers yet):
Same borrower, same downturn, different recovery paths.
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4. De Jure Structure vs De Facto Structure
This is where you introduce your important distinction.
Explain:
De jure structure is what documents say.
De facto structure is what actually happens when cash becomes tight.
Examples (high level):
Legal seniority without cash control.
Strong collateral with weak enforcement.
Covenants that trigger too late.
Positioning:
> Senior practitioners focus on de facto structure, not just documentation.
This sets up the need for multiple structure blocks.
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5. The Six Structure Blocks (High-Level Overview)
Introduce the six blocks as complementary, not standalone.
Use a clean diagram here.
For each block:
One sentence on purpose.
One sentence on what it primarily affects.
Block A: Capital Loss Absorption
Who bears loss first and how much.
Block B: Legal and Entity Containment
Where loss is legally trapped.
Block C: Cash Flow Control
Who controls cash before and during stress.
Block D: Contractual Intervention
When rights shift and action can be taken.
Block E: Asset and Credit Support
What backs recovery if cash flow fails.
Block F: Liquidity and Execution Support
Whether value survives stress without forced loss.
Each block links to its own series page.
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6. How Structure Responds to Business Risk Over Time
This section reinforces your dynamic point.
Explain:
Business risk can change quickly.
Structure changes slowly because it is contractual and multi-party.
This creates a structural lag.
Key insight:
> Structure must be designed early, when negotiating power exists.
Introduce:
Why retrofitting structure after risk rises is usually ineffective.
This is banker-realistic and educational.
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7. What Structure Can and Cannot Do (Boundary Conditions)
Explicit limits:
Structure cannot fix weak demand.
Structure cannot stabilise volatile cash flow.
Structure cannot prevent default.
Explicit capabilities:
Reduce loss severity.
Improve recovery certainty.
Shift loss to parties better able to absorb it.
This prevents misuse of the framework.
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8. How This Framework Applies Across Scenarios
Short subsections, no depth yet.
Corporate lending
Project finance
Leveraged buyouts
Bond investing
Key message:
Same structure blocks.
Different emphasis.
Links to scenario-specific pages.
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9. Practical Tools for Bankers and Clients
Introduce the tools without selling language.
Structure strength checklist
Scenario worksheets
One-page cheat sheets
Position them as:
> A way to think through structure systematically, not mechanically.
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10. Closing: Structure Is About Recovery, Not Optimism
Strong closing that reinforces discipline.
Suggested closing thought:
> When business risk rises, optimism disappears quickly.
Structure is what remains.
Call to action:
Read the detailed series.
Use the checklist.
Apply it before risk increases.
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SEO Architecture Notes (Important)
One H1 only.
Each major section as H2.
Structure blocks as H3.
Internal links to:
Each block series
Checklists and worksheets
External links optional, not necessary.
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Visual Assets to Plan
1. Business risk vs structure strength diagram
2. De jure vs de facto structure flow
3. Six structure blocks overview
4. Timeline showing risk change vs structure change
These materially improve comprehension and dwell time.
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Next step options
Once you confirm this outline, we can:
1. Write the full pillar page in banker language.
2. Design the Structure Strength Checklist page next.
3. Start with Block C: Cash Flow Control as the first deep-dive series.
STRUCTURE BLOCK A: Capital Loss Absorption Structure
Question: Who loses money first when things go wrong?
(Primarily LGD control)
Includes:
Capital structure Instrument or facility features (seniority, maturity, optionality)
Why grouped:
These jointly define the loss waterfall and timing. In practice, bankers discuss these together in any capital discussion.
STRUCTURE BLOCK B: Legal and Entity Containment Structure
Question: Where does loss legally stop?
(Primarily LGD through reachability)
Includes:
3. Legal entity and corporate structure
4. Regulatory and insolvency regime effects
Why grouped:
Entity placement is meaningless without insolvency context. Recovery depends on both at the same time.
STRUCTURE BLOCK C: Cash Flow Control Structure (De Facto Seniority)
Question: Who controls cash before default?
(Bridges PD and LGD)
Includes:
5. Cash flow routing and control mechanics
6. Cash flow partitioning (pre-allocated vs operational control)
7. Contractual waterfalls
Your terminology fits well here:
De jure: what ranking says. De facto: where cash actually goes.
This block deserves heavy emphasis. It is where senior practitioners differentiate themselves.
STRUCTURE BLOCK D: Contractual Control and Intervention Structure
Question: When can someone step in?
(Primarily PD containment, secondarily LGD)
Includes:
8. Covenants and triggers
9. Behavioural and incentive alignment mechanisms
Why grouped:
Both are about influencing behaviour before value is destroyed. One is restrictive, the other is incentive-based.
STRUCTURE BLOCK E: Asset and Credit Support Structure
Question: What backs recovery if cash flow fails?
(Direct LGD reduction)
Includes:
10. Collateral and security (physical assets)
11. Guarantees and credit support (financial backing)
As you suggested:
Physical collateral relies on asset value and enforceability. Financial collateral relies on third-party cash flow and balance sheet.
They behave differently and must be compared explicitly.
STRUCTURE BLOCK F: Liquidity and Execution Support Structure
Question: Can the structure survive stress without forced loss?
(Indirect LGD reduction)
Includes:
12. Liquidity buffers and reserves
13. External enforceability enhancements
Why grouped:
Both determine whether value leaks during stress. Often invisible in good times, decisive in bad times.
Summary: 6 structure blocks
Block
Banker mental use
A. Capital loss absorption
Who loses first
B. Legal containment
Where loss stops
C. Cash flow control
Who controls cash
D. Contractual intervention
When action happens
E. Asset and credit support
What backs recovery
F. Liquidity and execution
How losses are avoided
This is a working taxonomy, not academic.
SEO-optimised WordPress post series (proposed)
This should be a pillar + cluster model for SEO.
Pillar Page (Anchor Content)
Title (example):
“How Bankers Design Structures to Control Risk and Recovery”
Purpose:
Define “structure” in banker terms. Introduce the 6 structure blocks. Link out to each detailed post. Establish authority.
This page should rank for:
financial structuring banking structure credit structure capital structure vs collateral
Cluster Series: One block per series
Each block becomes 3–5 posts, depending on depth.
Series A: Capital Loss Absorption Structure
Posts:
Capital structure and recovery: why equity exists before debt
Senior, subordinated, hybrid: how priority really works
Maturity and amortisation: why timing changes loss
Worked example: same business, three capital structures, different outcomes
Each post:
One numbered worked example One simple balance sheet and cash flow Explicit LGD comparison
Series B: Legal and Entity Containment Structure
Posts:
Holding company vs operating company debt
Structural subordination explained with numbers
Jurisdiction and insolvency: why location matters
Worked example: same assets, different entity placement, different recovery
Series C: Cash Flow Control Structure (De Facto Seniority)
This should be your flagship series.
Posts:
De jure vs de facto seniority: why documents are not enough
Cash flow routing mechanisms explained
Cash flow partitioning before lenders see cash
Waterfalls in practice: who gets paid first and why
Worked example: covenant intact but cash trapped
This will differentiate your site.
Series D: Contractual Control and Intervention
Posts:
Covenants as early intervention tools
Why covenant breaches are not defaults
Incentives vs restrictions in restructuring
Worked example: value preserved vs value destroyed
Series E: Asset and Credit Support Structure
Posts:
Collateral does not prevent default
Physical collateral vs financial support
Guarantees: shifting risk, not removing it
Worked example: asset-backed vs guarantee-backed loan
Series F: Liquidity and Execution Support
Posts:
Liquidity buffers and forced sale risk
Why reserves reduce loss more than collateral
Enforcement mechanics in cross-border deals
Worked example: same collateral, different recovery timelines
Cross-scenario posts (high SEO value)
After the above:
“How structure differs in project finance”
“How structure differs in LBOs”
“How bond investors think about structure”
“How banks and bondholders view the same structure differently”
Each reuses the 6 blocks.
Mandatory elements in every post (non-negotiable)
To avoid consultant drift, every post must include:
Purpose of the structure in one paragraph
What risk it responds to
What it can and cannot do
One worked, numbered example
Link to the relevant checklist or worksheet
This keeps content operational.
Checklists, worksheets, and cheat sheets (WordPress pages)
These should be tools, not downloads.
A. Master Structure Checklist (Core Page)
Sections aligned to the 6 blocks:
Capital loss absorption
Legal containment
Cash flow control
Contractual intervention
Asset and credit support
Liquidity and execution
Each section:
Yes / No questions
Space for banker notes
Links to explanatory posts
This becomes your conversion asset.
B. Scenario-Specific Worksheets
Examples:
Project finance structure worksheet
Corporate lending structure worksheet
LBO structure worksheet
Each worksheet:
Same 6 blocks Different emphasis
Different example prompts
C. One-page Cheat Sheets
Examples:
“Structure vs PD vs LGD”
“De jure vs de facto seniority”
“Collateral types and recovery drivers”
These should be printable but live online.
5. Strategic positioning (important)
What you are building is not “content”.
It is a banker’s operating system for structure.
That is rare, defensible, and consistent with your:
Risks / Structures / Actions framing PD–LGD–EAD logic Senior practitioner audience.
