Asset securitization segregates the assets to be securitized from the business of the securitization’s sponsor (the Originator) by transferring them to a special purpose vehicle (SPV), often a trust. The trustee of the trust usually subcontracts the administration and servicing of the securitized assets back to a subsidiary of the originator of the asset pool or a third-party provider.
A special purpose vehicle (SPV) is created to carry out a specific business purpose or activity. SPVs are frequently used in structured finance transactions, such as in asset securitizations, joint ventures, or to isolate certain company assets or operations. SPVs can be created through a variety of entities, such as trusts, corporations, limited partnerships, and limited liability corporations.SPVs are used by many companies for an array of financing purposes.
While many of today’s affluent, multigenerational families understand the importance of having an integrated estate plan, it isn’t always easy to make time to draft and update one. A complete estate plan includes a will, trusts, and key legal documents such as powers of attorney for financial and healthcare matters, and requires some real advance thought on what you would like to have happen if life takes a surprising turn.