Asset-backed commercial paper (ABCP) is a short-term debt instrument issued by a special purpose vehicle (SPV) that is backed by various assets like trade receivables, auto loans, or other commercial assets.
A consortium is a collective arrangement wherein two or more businesses unite temporarily to undertake a large and complex project, leveraging pooled skills and resources to achieve a common goal.
Denoting assets or liabilities that do not appear on the balance sheet of a company. Various off-balance-sheet arrangements have been entered into by companies wishing to avoid full disclosure of their assets and liabilities through complex legal agreements, joint ventures, specially created subsidiaries, and structured finance arrangements.
Securitization is the process of turning assets into securities by packaging asset cash flows into tradable financial instruments. It involves an originator, a special purpose vehicle, and investors.
A Special Purpose Vehicle (SPV) is a separate legal entity created by a parent company to isolate financial risk. The SPV is often used for a single specific purpose, such as to facilitate complex financial transactions, isolation of assets, and credit enhancement in securitization.
A Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE) is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company allows separation of the parent organization from financial risk.
A finite-life entity created by corporations for a specific, narrow purpose, such as issuing income-preferred securities. These entities are used for various financial and organizational purposes, and are also known as special-purpose vehicles (SPVs) or variable-interest entities (VIEs).
