SPV

A special purpose vehicle, also often referred to as a special purpose entity (“SPE”), is a single-purpose entity, often structured as a partnership or other tax “pass-through” vehicle, and frequently used in securitization or other financing transactions. Under Basel rules, no capital issued by SPVs would qualify as CET1. It may qualify as Additional Tier 1 Capital (“AT1”) or Tier 2 capital for bank regulatory capital purposes.

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