Function-Instrument Matrix

Definition

A mapping that links each of the five functional layers (i) to appropriate financial instruments (j). The matrix guides capital structure design by showing which instruments serve which architectural functions, enabling systematic blended finance construction.

Formula

M_ij ∈ [0,1] where M_ij represents suitability of instrument j for function i

Example

M_RiskAbsorption,FirstLoss = 0.95 (first-loss tranches highly suitable for risk absorption). M_CrowdIn,Guarantee = 0.85 (guarantees effective for crowd-in). M_TemporalSmoothing,ShortLoan = 0.20 (short loans poor for temporal smoothing).

Source

UACC Section 4

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Function-Instrument Matrix

Definition

Formula

Example

Source

Related Terms from Unified Architecture for Catalytic Capital

Explore the Full Glossary

Function-Instrument Matrix

Definition

Formula

Example

Source

Related Terms from Unified Architecture for Catalytic Capital

Explore the Full Glossary