Series 52: Special Purpose Vehicle (SPV)

Taken from our MSRB Municipal Securities Representative Qualification Examination

Definition of the term Special Purpose Vehicle (SPV)...

a business entity created exclusively to create and sell mortgage-backed securities. The SPV repackages acquired assets into a new bond issue and sells that issue to an underwriter, who then resells the mortgage-backed securities to investors.

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Solomon Exam Prep Study Materials for the Series 52
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