Definition of «special purpose vehicle»

A special purpose vehicle (SPV) is a legal entity created for a specific limited-time purpose, often used in finance and accounting. It can refer to a company or trust that is set up to carry out a particular project or transaction, such as the issuance of debt securities. The SPV's structure allows it to raise funds without directly affecting its parent organization's creditworthiness. Once the purpose for which the SPV was created has been accomplished, it may be dissolved.

Sentences with «special purpose vehicle»

Although these types of transactions are usually issued through special purpose vehicles, this is not always the case. (investinginbonds.com)
We also create special purpose vehicles (SPVs) to purchase investments with general partners. (industryventures.com)
Under the facility, the Federal Reserve Bank of New York provides senior secured funding to a series of special purpose vehicles to facilitate the purchase of assets from eligible investors, such as U.S. money market mutual funds. (stlouisfed.org)
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