There are a number of different things that the acronym SPV could stand for. Some of the things that it could refer to are Special Purpose Vehicle, Supervisor, Special Purpose Venture or Self Piloted Vehicle

Buys loans and securitizes them. It will sell them to the special purpose vehicle (SPV) once there are enough loans to securitize.

An SPV is created as a separate corporate entity to implement a particular project. A JV is an entity created through equity participation of multiple firms to do business in a particular area.

a fi is required to have 8% oftheier loan portfolios as a cash cover baddebt. if a part of their loan portfolio is sold this frees up working capital for financial institution.

loan clogs up bank balance sheet

Essentially not a great deal! A Collateralised Debt Obligation (CDO) is a product whereby a Special Purpose Vehicle (SPV) is populated with a wide variety of assets. The returns from these assets are then split by risk such that depending on your risk aversion/investment profile you can buy highly rated tranches of a CDO with lower rates of return, or alternatively more risky tranches with higher rates of return.

A Collateralised Loan Obligation (CLO) only has loans in the SPV.