The absence of SPV’s would mean key investment opportunities such as facilitating and supporting securitisation, financing, risk sharing and raising capital would not be possible without putting the whole corporation at risk.
It is evident that there is an appetite for using SPV’s going forward, but the parameters of their safe use must be correctly established. PwC can advise banks on how to manage SPVs, and review the risk levels of SPVs in relation to the remainder of the sponsor’s portfolio.