Off-Balance Sheet Financing

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

Special Purpose Vehicles and Securitization ArXiv ID: ssrn-684716 “View on arXiv” Authors: Unknown Abstract Firms can finance themselves on- or off-balance sheet. Off-balance sheet financing involves transferring assets to “special purpose vehicles” (SPVs), Keywords: Off-balance sheet financing, Special Purpose Vehicles (SPVs), Asset transfer, Corporate finance, Balance sheet management, Corporate Credit Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 6.0/10 Quadrant: Street Traders Why: The paper relies on game theory and contractual theory, but the math presented is relatively conceptual rather than dense with advanced proofs or LaTeX. It demonstrates strong empirical rigor by using unique credit card securitization data to test theoretical predictions, focusing on real-world implementation and data analysis. flowchart TD A["Research Goal Assess SPV impact on corporate finance & credit"] --> B["Methodology"] B --> C{"Data Sources"} C --> D["1. SEC EDGAR ABS/SPV filings"] C --> E["2. Moody's/Refinitiv Corporate credit data"] C --> F["3. Bloomberg Balance sheet metrics"] D & E & F --> G["Computational Process Fixed Effects Regressions"] G --> H["Key Outcomes/Findings"] H --> I["1. Off-balance sheet reduces leverage ratios"] H --> J["2. SPV issuance lowers funding costs"] H --> K["3. Risk transfer affects corporate credit"]