Page 154 - PRIAA Glossary

SPECIAL PURPOSE VEHICLE (SPV)
A corporate entity used for a wide variety of purposes including the securitisation of loans, bonds or receivables in order to help spread the credit and interest rate risk of an underlying portfolio over a number of investors. SPVs are typically ring- fenced, bankruptcy remote, highly rated and offshore vehicles.
SPECIFIC RISK
The portion of a security’s market risk that is unique to that security.
SPIN OFF
A type of divestiture where an independent company is created through the sale of new shares of a division (or company) of an existing parent company.
SPINNING RESERVES
Back-up energy production capacity that can be made available to a transmission system at very short notice and can operate continuously for a minimum time once it is brought online. This ancillary service is used by an independent system operator (ISO) to maintain system balance and integrity in cases of sudden increases in demand/supply for power.
SPOT MONTH
The futures contract that matures and becomes deliverable during the present month. Also called “current delivery month”.
SPOT PRICE/RATE
The price of a commodity, security or currency that is quoted for immediate payment or delivery.
SPREAD (BID/OFFER)
The difference between the bid and the offer rate. The bid/ offer spread can be considered a measure of liquidity.
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