Hedging by an SPV

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An originator securitises a portion of its assets with an SPV (Trust).
The underlying pays fixed.
The PTCs issued pay floating rate of interest.
Now, can the above Trust enter into an IRS with the Originator itself to hedge its risks or will the hedging have to be done with some other counterparty only.



Posted on Apr 23, 2004, 11:48 AM
from IP address 203.197.18.77


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