# Conduit company, often just conduit and partly neuter, partly masculine gender (conduit)

- Canonical URL: https://www.gerhardmerk.de/conduit-company-often-just-conduit-and-partly-neuter-partly-masculine-gender-conduit
- Post ID: 589758
- Modified: 2023-07-25T20:58:58+00:00
- Language: en

## Definition

Strictly speaking - a bankruptcy-remote special purpose entity: a subsidiary or affiliate institution whose asset-liabilitystructure and legal status makes its obligations secure even if its parent company or guarantor goes bankrupt), - which is designed to be permanent (conduit = a stable tube or duct for carrying and shielding electrical wires or cables; insulating tube, cable sheathing) and - serves to tranch the asset-backed securities - brought into a pool by an originating bank or several originators - and - to place them on the market as securitized securities. As a rule, however, special purpose entities and conduits are equated. - If receivables of several sellers of receivables are bundled in a conduit, this is sometimes also referred to as a multi-seller conduit. - Conduits are regularly established and held abroad in order to avoid German trade tax. - See activity-shifting, on-balance-sheet, investment vehicles, back-to-originator postulate, banking regulation paradox, credit enhancement single-originator securitization, loan commitments, irrevocable, originate-to-distribute strategy, kickback effect, single master liquidity conduit, nesting company, shadow banking, voting rights criterion, subprime crisis, support, tacit, securitization paper retention, securitization structure, special purpose vehicle consolidation. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0