Assets held by Irish-resident SPEs valued at €965bn

Central Bank data reveals growth was driven by collateralised loan obligation vehicles

 

Total assets held by Irish-resident Special Purpose Entities (SPEs) grew by almost €23 billion to €965 billion in the second quarter of 2021, while the number of SPEs rose by 21 to 2,934.

SPEs, also known as Section 110 companies, are used by companies to raise finance from bond markets and privately to undertake a specific business purpose or activity.

The total assets of Irish-resident securitisation SPEs, or Financial Vehicle Corporations (FVCs), increased over the quarter by €21.6 billion, to €529 billion, primarily due to an increase in collateralised loan obligation (CLOs) vehicles registered during the quarter and an increase in assets held by asset backed securities (ABS) and asset backed commercial paper (ABCP) vehicles.

Collateralised loan obligation (CLOs) vehicles continued their growth in excess of other securitisation activity with a 424 per cent increase over the last five years, closing the quarter at a record high of €181.2 billion total assets.