Securitisation glossary by Vinod Kothari
Consolidation - Several possible meanings, but in the context of securitisations, normally refers to the action of a judicial authority in treating the SPV and the originator as the same entity by applying a legal concept called lifting or piercing the corporate veil. If consolidation is done by a Court, the transfer of assets by the originator to the SPV would become unfructuous. Securitisation structures aim at avoiding the possibility of a consolidation by Courts.
In accounting sense, could mean the consolidation of the accounts of the SPV with those of the originator. Again, this would mean the assets transferred by the originator would come back on the balance sheet of the originator.
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