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| ==Multi-issuance [[repackaging]] vehicles: secured, limited recourse== | | ==Multi-issuance [[repackaging]] vehicles: secured, limited recourse== |
| In the world of multi-issuance [[repackaging]] [[SPV]]s, [[secured, limited recourse obligation|secured limited recourse]] obligations are ''de rigueur''. They save the cost of creating a whole new vehicle for each trade, and really only do by [[contract]] what establishing a brand new [[espievie]] for each deal would do through the exigencies of corporation law and the [[corporate veil]]. That said, with [[Segregated portfolio company|segregated cell companies]], you can more or less do this, through the exigencies of the corporate veil, inside a single [[espievie]]. But I digress.
| | {{Repackaging limited recourse capsule}} |
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| With [[secured, limited recourse obligation]]s there is a ''quid pro quo'': creditors agree to limit their claims to the liquidated value of the secured assets underlying the deal (usually a [[par asset swap]] package), but in return, the issuer grants a first-ranking security over those assets in favour of the creditors, stopping any interloper happening by and getting its mitts on them.
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| Over the years the secured, limited recourse technology has been refined and standardised, and now plays little part in the education of a modern-day structured finance lawyer, though, at his mother’s knee, he might once have been told fairy stories about what became of poor Fidgety Phillip when he carelessly put “extinction” rather than “no debt due” in a pricing supplement on his way home from school and burned to death.<ref>Come to think of it he may have forgotten to file a [[Slavenburg]].</ref>
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| ==[[Investment fund]]s== | | ==[[Investment fund]]s== |