What is repack finance?
Also known as a repack note. A structured finance instrument (being a debt security in the form of a bond) issued by a bankruptcy remote special purpose vehicle (SPV). A repack note is backed, that is funded, by the cash flows arising from an existing debt or equity security that the SPV has acquired.
What is a repack transaction?
A repackaged note means the note newly repacked using derivatives such as currency and interest rate swaps to make cash flows of secondary market notes more appealing to investors. Underlying notes (collateral notes) are transferred to an overseas SPC and new notes are issued backed by them.
What is a repack securitization?
An off-shoot of securitisation, a repackaging involves a bankruptcy remote special purpose vehicle issuing bonds (also known as repack notes) backed by (and the issue proceeds of which are used to purchase) an existing debt or equity security.
Can I repackage and sell a product?
When you do not have the facilities to manufacture products, but still want to start a business, you could be ordering products in bulk, repackaging it and selling it. You simply put your own brand name and labeling on the product and you’re in business.
How does a credit linked note work?
A funded credit derivative in the form of a debt security, under which the investor in the note will receive the face value of the note at maturity unless there is a default by an underlying third party referenced by the note, in which event the investor will take delivery of debt securities of the underlying reference …
What is Spire repack?
Spire’s repacks will allow investors to gain exposure to all kinds of asset classes, payoffs and underlyings, but not proprietary indices, which are boutique, in-house instruments and, as such, are not shared between the dealers on Spire, as well as other particularly illiquid assets.
Is it legal to relabel a product?
Any company can relabel products and sell them under their own brand. However, there are typically two groups where relabeling is seen as a more frequent activity: 1. Entrepreneurs who are considering venturing into a new market for the very first time.
Are repackage supplements legal?
(a) You may repackage or relabel dietary supplements only after quality control personnel have approved such repackaging or relabeling.
What is the difference between CLN and CDS?
The CLN would be for the same principal amount and maturity as the CDS. The final terms of the CLN would mirror the terms in the CDS transaction. The CLN investor would pay cash to the bank to buy the note. The bank would pay the investor regular interest until the maturity of the note, (see diagram 1).
What is a credit note investment?
A credit-linked note (CLN) is a financial instrument that allows the issuer to transfer specific credit risks to credit investors. A credit default swap is a financial derivative or contract that allows issuers of credit-linked notes to shift or “swap” their credit risk to another investor.
What is a spire note?
The Spire programme allows for repackaged notes arranged by the platform’s dealer-members, to be issued in standardised formats. Investors can gain exposure to the returns of a variety of underlying collateral assets and customisable payoffs.
Is repackaging considered manufacturing?
Simply receiving, storing, relabeling, distributing, or reshipping pre-packaged quantities from a shipment of packages is not “manufacture,” “process,” or “otherwise use.”
What is repackaging in finance?
A structured finance technique that banks use to create tailored investments for their customers. An off-shoot of securitisation, a repackaging involves a bankruptcy remote special purpose vehicle issuing bonds (also known as repack notes) backed by (and the issue proceeds of which are used to purchase) an existing debt or equity security.
What is a repack note?
Also known as a repack note. A structured finance instrument (being a debt security in the form of a bond) issued by a bankruptcy remote special purpose vehicle (SPV). A repack note is backed, that is funded, by the cash flows arising from an existing debt or equity security that the SPV has acquired.
What is a repack trade?
REGULATION A typical repack trade can see overseas government bonds combined with cross currency swaps to offer domestic currency bond exposure in simple note format.
What are the capabilities of a repack?
Bond repack capabilities – Simplicity, security, independence. It can be used to access restricted onshore investments, to customise cash flows by implementing derivatives or to transform the forms of investment. The traditional way is to set up a special-purpose vehicle in a country with preferential tax treatment and appoint agents such as…