Search results
Results from the WOW.Com Content Network
A special-purpose entity (SPE; or, in Europe and India, special-purpose vehicle/SPV; or, in some cases in each EU jurisdiction, FVC, financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives.
Orphan structure or Orphan SPV or orphaning are terms used in structured finance closely associated with creating SPVs ("Special Purpose Vehicles") for securitisation transactions where the notional equity of the SPV is deliberately handed over to an unconnected 3rd party who themselves have no control over the SPV; thus the SPV becomes an "orphan" whose equity is controlled by no one.
A bank transfers risk in its loan portfolio by entering into a default swap with a ring-fenced special purpose vehicle (SPV). The SPV buys gilts (UK government bonds). The SPV sells 4 tranches of credit linked notes with a waterfall structure whereby: Tranche D absorbs the first 25% of losses on the portfolio, and is the most risky.
"The financial institutions that originate the loans sell a pool of cashflow-producing assets to a specially created "third party that is called a special-purpose vehicle (SPV)". The SPV (securitization, credit derivatives, commodity derivative, commercial paper based temporary capital and funding sought for the running, merger activities of ...
Critically, in assessing a company's financial position (and reading its balance sheet), COE is distinguished from CAPEX, or costs associated with Capital Expenditures. [ 7 ] [ 8 ] Ke is most often used in the Capital Asset Pricing Model (CAPM), in which Ke = Rf + ß(Rm-Rf).
Unlike most developed financial markets, there is no legal structure similar to segregated portfolio companies in South Africa. Rather, these companies, known locally as cell captive companies, are companies with different classes of shares, each class being issued to a different cell owner.
Financial accounting is the preparation of financial statements that can be consumed by the public and the relevant stakeholders. Financial information would be useful to users if such qualitative characteristics are present. When producing financial statements, the following must comply: Fundamental Qualitative Characteristics:
Accounting standards are currently set by the Financial Accounting Standards Board and were historically set by the American Institute of Certified Public Accountants (AICPA) subject to U.S. Securities and Exchange Commission (SEC) regulations. [7] Auditors took the leading role in developing GAAP for business enterprises. [8]