The article discusses new financial instruments like option instruments, securitization, and credit derivatives. It explains basic financial innovation and instruments such as forwards, futures, swaps, and options. The researchers also cover new types of bonds like mortgage-backed securities and asset-backed securities. Additionally, they delve into structured notes, preferred stock, convertibles, warrants, and equity derivatives. The main goal is to introduce these innovative financial tools and provide insights into their uses and benefits in the financial market.