Special purpose vehicle (SPV)

The Lehman flip clause flap

The decision of a US bankruptcy court to void contractual provisions that shield investors from the credit risk of swap counterparties in structured finance deals has put the legal systems of England and the US on a collision course. It also has…

Collateral replacement

At the height of the financial crisis, manufacturers were quick to mitigate mounting counterparty risk concerns by deploying products issued by collateralised special purpose vehicles. But now, as the yield junkies return and retail appetite for…

Stung by BEE

Black economic empowerment has been a big source of profits for South African banks in recent years. But market turmoil means many deals are underwater, and some market participants have likened the situation to the US subprime mortgage crisis. Mark…

A tangled web

One year on from the collapse of Lehman Brothers, administrators are still trawling through the complex web of special-purpose vehicles launched by the broker-dealer. A number of lawsuits have resulted - and the rulings could see US and UK courts at…

FDIC seeks feedback on SPV FASB accounting changes

US regulatory authorities are to consult financial institutions over impending changes to accounting principles that could bring billions of dollars in off-balance-sheet conduits and other vehicles back onto bank balance sheets, ramping up firms' capital…

Into account

The US Financial Accounting Standards Board has released new rules on off-balance-sheet exposures, which will compel US companies to consolidate billions of dollars of assets previously kept in special-purpose entities on to their balance sheets. How…

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…

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