Wednesday, January 9, 2008

Yeah, Scooby, just what are these pesky things?

What are Structured Investment Vehicles (SIV) ?

What Are Structured Investment Vehicles (SIV)?

The first SIVs were founded in the mid-1980s as bankruptcy-remote entities and were sponsored by large banks or investment managers for the purpose of generating leveraged returns. They do this by earning the spread (differences in yields) between the longer-dated assets purchased and the short-term liabilities issued. The balance sheet of a structured investment vehicle typically contains assets such as asset-backed securities (ABS) and other high-grade securities.

Posted by lvmreader @ 04:00 AM (413 views)
Please complete the required fields.

2 thoughts on “Yeah, Scooby, just what are these pesky things?

  • Maintaining a high quality asset portfolio is a fundamental part of running a SIV. The purchase of these assets is funded through issued liabilities in the form of commercial paper (CP), medium-term notes (MTNs) and subordinate capital notes. The CP and MTN are given the highest credit ratings (AAA or A3) from one or more of the three major rating agencies. The virtually risk-free rating is what makes SIV debt so appealing and successful in the capital markets.

    Please complete the required fields.

  • A rotten apple is a rotten apple, not matter what you call it….

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>