Special purpose vehicles (SPVs) play an important role in asset securitization. SPVs are legal entities that hold transferred assets in order to issue securities to investors backed by those assets. For the securitization to be effective, the transfer of assets from the sponsor to the SPV must be considered a "true sale" to keep the SPV off the sponsor's balance sheet. SPVs are structured to be bankruptcy remote from the sponsor to protect investors in case of sponsor bankruptcy. Several legal and regulatory issues surrounding SPVs and securitization must be addressed for these structures to work properly.
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
Investment management is a generic term that most commonly refers to the buying and selling of investments within a portfolio. Investment management can also include banking and budgeting duties, as well as taxes. The term most often refers to portfolio management and the trading of securities to achieve a specific investment objective.
Investment management – also referred to as money management, portfolio management or private banking – covers the professional management of different securities and assets, such as bonds, shares, real estate and other securities. Proper investment management aims to meet particular investment goals for the benefit of the investors. These investors may be individual investors – referred to as private investors – who have built investment contracts with fund managers, or institutional investors who may be pension fund corporations, governments, educational establishments or insurance companies.
Investment management services provide asset allocation, financial statement analysis, stock selection, monitoring of existing investments and plan implementation.
An investment banking is a financial institution that assists individuals, corporations and governments in raising financial capital by underwriting or acting as the client’s agent in the issuance of securities or both
This ppt describes about the mutual fund in detail to create an awareness before taking any investment decision. It shows the benefits related to investment diversification in mutual funds and various related terms to it. It contains information on equity fund, debt fund and hybrid fund.Equity fund is the one where risk involved is highest so higher returns could also be expected, Debt fund are generally the government bonds so the risk involved is lower as compared to equity shares and thus the return is also lower while the hybrid fund allocates fund partially in both equity and debt so the risk gets moderated and returns are beneficial.Large cap fund is associated with the large companies having highest market capitalization, Mid cap funds are those related to medium size companies while low cap is for startups with lower capitalization.And many more concepts has been described.
I have given this presentation at the Amsterdam Business School, University of Amsterdam. It is a practical introduction for Master students in Financial Markets about the importance of Risk Management and the tools thereof.
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
Investment management is a generic term that most commonly refers to the buying and selling of investments within a portfolio. Investment management can also include banking and budgeting duties, as well as taxes. The term most often refers to portfolio management and the trading of securities to achieve a specific investment objective.
Investment management – also referred to as money management, portfolio management or private banking – covers the professional management of different securities and assets, such as bonds, shares, real estate and other securities. Proper investment management aims to meet particular investment goals for the benefit of the investors. These investors may be individual investors – referred to as private investors – who have built investment contracts with fund managers, or institutional investors who may be pension fund corporations, governments, educational establishments or insurance companies.
Investment management services provide asset allocation, financial statement analysis, stock selection, monitoring of existing investments and plan implementation.
An investment banking is a financial institution that assists individuals, corporations and governments in raising financial capital by underwriting or acting as the client’s agent in the issuance of securities or both
This ppt describes about the mutual fund in detail to create an awareness before taking any investment decision. It shows the benefits related to investment diversification in mutual funds and various related terms to it. It contains information on equity fund, debt fund and hybrid fund.Equity fund is the one where risk involved is highest so higher returns could also be expected, Debt fund are generally the government bonds so the risk involved is lower as compared to equity shares and thus the return is also lower while the hybrid fund allocates fund partially in both equity and debt so the risk gets moderated and returns are beneficial.Large cap fund is associated with the large companies having highest market capitalization, Mid cap funds are those related to medium size companies while low cap is for startups with lower capitalization.And many more concepts has been described.
I have given this presentation at the Amsterdam Business School, University of Amsterdam. It is a practical introduction for Master students in Financial Markets about the importance of Risk Management and the tools thereof.
Revisiting A Panicked Securitization MarketIOSR Journals
With the passage of Finance Bill 2013 on April 30 in Lok Sabha proposing to Levy a 30% distribution tax on the investors in securitization deals through special purpose vehicles, there is a stir in the securitization market. The principal investors (banks) were paying the tax on their net income from the securitization transaction through SPVs. Now, they will be taxed on the gross income as per the new Finance Bill. The new securitization guidelines issued in May 2012 dipped the volume of fresh issue to Rs. 28,400 crore from Rs. 44,500 crore in the preceding fiscal.
How to set up a Hedge Fund or Cayman Investment Fund. This guide provides an overview of the requirements. However, please contact our professional team to discuss your specific requirements: info@bellrockgroup.com
Corporate Structuring and Fundraising for Single Purpose VehiclesRiveles Wahab LLP
What do securities syndications and fundraising for real estate, restaurant ventures, film ventures, theme parks and a variety other project finance opportunities have in common?
The answer is simply the often overlooked and misunderstood “SPV.” Essentially, the SPV or “Single Purpose Vehicle” is an entity that is structured to take in investor monies towards funding a singular dedicated project or opportunity. Indeed, a great majority of real estate finance projects, and a variety of other project finance opportunities essential to the U.S. economy, are at least partly funded by SPVs. Furthermore, with the advent of crowdfunding and “general solicitation” under the JOBS Act, the SPV’s role in financing a variety of projects and operating companies cannot be overstated.
Financial statements are written records that convey the business activities and the financial performance of a company.
Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
1. Role of Special Purpose
Vehicles in ABS Market
August 14-18, 2006
Shanghai, China
Noritaka Akamatsu
The World Bank
2. SPV in Asset Securitization
Investor
Trustee
Securities or
Transfer of
trust certificates Investor
assets
Sponsor SPV Securities
companies
Investor
Servicer
Investor
Sponsor could be at the same time
a servicer especially if it is a bank.
3. Special Purpose Vehicle
(SPV)
Legal entity functioning as a conduit with no physical
presence, independent management or employees.
It can take the form of limited partnership, limited
liability company, trust, corporation, collective
investment fund or established under special law but
only if those laws SPV-enabling.
A subsidiary of the sponsor, or an Off-B/S body not
consolidated with the sponsor for tax, accounting or
legal purpose.
– The latter enables off-balance sheet financing.
4. Off-B/S SPV
The transfer of assets from the sponsor to SPV must
be “true sale” to be off-B/S.
Thinly capitalized.
Administrative functions are performed by a trustee
who follows pre-specified rules regarding the receipt
and distribution of cash.
Assets held by SPV are serviced by a servicing
arrangement.
Structured not to go bankrupt (Bankruptcy remote)
despite the thin capitalization.
5. Off-B/S SPV
+ Enables the sponsor to remove debt from its B/S,
reduce the leverage and bankruptcy risk.
+ It thus reduces the cost of capital (by reducing the
expected cost of bankruptcy) and create additional
room for financing for the Sponsor.
But
- But setting up an SPV involves costs though use of
master trust reduces those for large regular issuers.
- The sponsor loses tax advantage of carrying debt.
- It can also create prepayment risk for ABS which
investors will price to pass on to the sponsor.
6. Cash flow manipulation and
credit enhancement
SPV facilitates cash flow manipulation
– Cash flow “tranching” enables creation of different classes
(seniority) of securities or beneficiary interest to best exploit
market opportunities with senior notes credit-rated.
Bearing of residual risk by the Sponsor enables credit
enhancement of higher class notes. It can also
discourage moral hazard by the Sponsor.
But it prevents the Sponsor to off load risky assets.
It can also raise a question about the true sale of the
assets.
– Collateral Investment Amount (CIA) and reserve account
7. SPV facilitates credit
enhancement
Pooling of assets diversify their idiosyncratic risks
and reduces the risk of potential adverse selection
by the Sponsor
Tranching also enables enhancement of the
creditworthiness of the senior tranches. E.g.,
– A notes, B notes, which are typically credit-rated.
– C notes (Collateral Investment Amount or CIA), which are
typically privately placed.
– Reserve account,
Over-collateralization,
Letter of credit,
guarantee by insurance company,
internal reserve fund,
8. Moral recourse and its
implications
The Sponsor also sometimes voluntarily provides the
SPV with moral recourse to its credit in the event of
major deterioration of the credit of SPV assets.
Market (and credit raters?) also expects that to some
extent although such credit supports are not spelled
out in the contract.
Court may see it as an evidence of on-B/S assets
and may not recognize the bankruptcy remoteness
of the SPV.
The failure to establish “true sale” of assets would
lead to losses to the SPV beneficiaries in the event of
the Sponsor’s bankruptcy.
9. “True sale” and
“bankruptcy remoteness”
Two key concepts of asset securitization.
“True sale” ensures the SPV to be off-B/S, i.e., the
beneficiaries’ rights over the assets held by SPV
should not be challenged by the third party.
– When the Sponsor goes bankrupt, court may recharacterize
the sale of assets to SPV as a secured transaction or
consolidate the assets of the Sponsor and the SPV to
protect the interest of creditors of the Sponsor.
True sale must be established to ensure that
bankruptcy of the Sponsor have no implications on
the SPV.
10. True sale in the US
FAS 140, “Accounting for Transfers and Servicing of
Financial Assets and Extinguishment of Liabilities”
SPV must be a “qualifying SPV,” i.e.,
Demonstrably distinct from the sponsor (i.e., cannot
unilaterally dissolve the SPV and at least 10% sold to the
unrelated third parties);
Limited in its permitted activities specified by the legal
documents defining its existence;
Holds only passive receivables and makes no business
decisions; and
Has the right to sell or dispose of non-cash receivables only
in automatic response to the occurrence of certain events.
The Sponsor must surrender “control” of the
receivables, i.e., have no ability to unilaterally cause
the SPV to return specific assets.
11. Variable Interest Entity (VIE)
Lessons from Enron
FASB struggled to define an SPV.
New measures of financial control in the US, based
not on voting rights but on the answers to the
following two questions:
– Who holds the majority of the residual risk?
– Who obtains the majority of the benefit?
If the sponsor retains residual interest in an SPV,
the SPV may be classified as “variable interest
entity (VIE)” which fails to be a Qualifying SPV.
12. SPV must be bankruptcy
remote
Critical to avoid bankruptcy costs. The higher the
Sponsor’s bankruptcy costs, the more useful SPV will
be, especially when the Sponsor is risky.
Bankruptcy of the sponsor should have no
implications on the SPV.
– True sale is required.
SPV itself must be structured to ensure that it be
unable to go bankrupt.
– Create SPV in a legal form that is ineligible to be a debtor
under the bankruptcy law.
– Pass-through structure
– Etc.
13. Bankruptcy remoteness
– continued
Obtain agreements from its creditors that they will
not file involuntary petitions for bankruptcy.
If corporation, the charter / by-laws:
– can be structured to require unanimity of votes by the
board of directors to file a voluntary bankruptcy petition.
– have provisions that negate the board’s discretion unless
certain other criteria are met.
14. Characteristics of bankruptcy
remote SPV (S&P’s 2002)
Restrictions on objectives, powers and purposes;
Limitations on ability to incur indebtedness;
Restrictions or prohibitions on merger, consolidation, dissolution,
liquidation, winding up, asset sales, transfers of equity interest,
and amendments to the organizational documents relating to
separateness;
Incorporation of separateness covenants restricting dealings with
parents and affiliates;
Non-petition language, i.e., a covenant not to file the SPV into
involuntary bankruptcy;
Security interest over assets; and
An independent director (or functional equivalent) whose
consent is required for the filing of a voluntary bankruptcy
petition.
15. Accounting & Taxation of
SPV
SPV is typically structured to be tax neutral; i.e.,
they are tax-exempted and/or designed to have no
taxable income (e.g., pass-through, pay-through).
– If the tax neutrality is not achieved, the securitization
becomes too costly to be viable.
Trust (special purpose trust or SPT) is popular form
of SPV in securitization partly because trust is not
taxable, having no legal personality and own income.
– The trustee should have no power to vary the investments
in the asset pool.
– Its activities should be limited to conserving and protecting
the assets on behalf of the beneficiaries.
16. Problems sometimes found
with SPT
Is trust certificate recognized as “securities” under
Securities Law? If not, securities companies may not
be allowed to deal in the instruments.
It may not be allowed to be traded in the regulated
securities market such as a stock exchange.
Then, the instrument loses an important distribution
channel and therefore attractiveness to its potential
investors.
The lack of demand would discourage potential
Sponsors to securitize in the first place.
17. Difficulties with Special
Purpose Company (SPC)
Conventional company law typically does not enable
SPC because it typically requires:
– Company have $X of capital to be established.
– Company issue securities to the public only after X years of
successful operation.
– Shares of privately held company not be sold without
consent of other shareholders.
Conventional company is taxable.
Conventional company is not bankruptcy protected.
Need a special law to enable it? Or use collective
investment scheme under investment fund law?
18. Difficulties with Special
Purpose Company (SPC) – 2
Pay-through bonds are issued by SPC.
The residual (the seller’s interest) becomes “equity”
of the seller, which would prevent the recognition of
true sale of the assets for tax purposes.
19. Legal framework
Need a comprehensive review of the legal
framework surrounding the securitization process to
see its feasibility. SPV sits in the kernel of the
securitization process.
While the subject is technical, reforming various laws
requires policy cooperation among various
authorities.
The central bank’s leadership tends to be particularly
important. E.g., interest rate policy, rational
prudential rules for banks, etc.