Special Purpose Vehicles and Securitization

ArXiv ID: ssrn-713782 “View on arXiv”

Authors: Unknown

Abstract

This paper analyzes securitization and more generally special purpose vehicles (SPVs), which are now pervasive in corporate finance. The first part of the paper

Keywords: Securitization, Special Purpose Vehicles (SPVs), Corporate finance, Off-balance sheet financing, Asset transfer, Structured Products

Complexity vs Empirical Score

• Math Complexity: 5.5/10
• Empirical Rigor: 7.0/10
• Quadrant: Street Traders
• Why: The paper develops a theoretical model to explain SPV usage, contributing to math complexity, but its primary strength is the empirical testing of model implications using unique credit card securitization data.

  flowchart TD
    A["Research Goal: Analyze SPV and Securitization<br/>Functionality in Corporate Finance"] --> B["Data Collection<br/>Corporate Filings & Regulatory Databases"]
    B --> C["Methodology: Structural Analysis<br/>Off-balance Sheet Asset Transfer Review"]
    C --> D["Computational Process<br/>Risk Exposure & Leverage Calculation"]
    D --> E{"Key Findings"}
    E --> F["Increased Leverage &<br/>Systemic Risk Accumulation"]
    E --> G["Regulatory Arbitrage &<br/>Reduced Transparency"]
    E --> H["Complexity in<br/>Structured Products"]