SPVs & Insolvency Remoteness: A Financial Fort Knox or Just Fancy Paperwork?

Imagine you’re going on a road trip with your most financially questionable mate. Let’s call him Dave. You’ve all agreed to split the petrol and take turns driving. But halfway through, Dave realises he’s “accidentally” spent his contribution at the motorway service station on a Burger King meal deal and an industrial sized bag of pick ‘n’ mix. Now, because Dave is unreliable, you wisely decide to keep your money in a separate “Dave-proof” box that he can’t get his sticky fingers on.

That, my friends, is basically what an SPV does in finance.