This chapter explains structured products, the various investment strategies that are based on derivatives, where they are highly customized, and usually the payoffs are derived not from the issuer's own cash flows but from the values of one or more underlying assets. Many structured products offer a principal guarantee, which guarantees the return of principal if held to maturity. Investors consider structured products as an alternative to direct investment or a means of portfolio diversification. Structured products are attractive to investors because they may offer higher returns, principal protection, or tax benefits. A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a collection of mortgages. The chapter presents a case study on Anderson Insurance Corporation to define a collateralized mortgage obligation. Mortgages are pooled and interests in these pools are sold to investors in classes, or tranches. Bondholders buy into these mortgage pools and receive cash flows.