Back to repack

Despite the flak off-balance-sheet vehicles have received since the onset of the financial crisis, dealers report increased use of special-purpose vehicles by investors looking to repackage assets. Why are investors looking to these repackaging vehicles now? By Christopher Whittall

Special-purpose vehicles (SPVs) have been portrayed as one of the villains of the financial crisis. The ability to transfer assets to special-purpose entities lulled many banks into a false sense of security, with few contemplating the possibility these assets would have to be consolidated back on to the balance sheet - something several banks opted to do rather than suffer the reputational damage caused by the failure of structured investment vehicles sponsored by them.

These vehicles also