SPV/SPE

Special purpose vehicle/entity (SPV/SPE) may mean one of things. First, it is a subsidiary corporation whose purpose is to act as the counterparty of credit sensitive derivative instruments and swaps otherwise known as ‘derivatives product company.’ Second, it is a subsidiary company that is limited in operations in acquiring and financing specified assets and whose asset/liability structure put priority in its obligations that even in the case of bankruptcy of the parent company, the obligations are secure. It is otherwise known as ‘bankruptcy-remote entity.’