Structured investment vehicle

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Structured investment vehicle

A fund that borrows for the short-term by issuing commercial paper to invest in long-term assets like MBS and asset-backed securities. The profit is made on the credit spread between short-term debt and long-term investments. Structured Investment Vehicles are often used as off-balance sheet investments by financial firms. SIVs played an important role in the credit crunch of 2007-2008.
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In addition, McGraw Hill reached a separate $125 million settlement with the California Public Employees' Retirement System to resolve its claims regarding ratings on three structured investment vehicles.
In addition, the Company reached a separate settlement with the California Public Employees' Retirement System ("CalPERS") to resolve its claims against the Company regarding ratings on three structured investment vehicles.
The shadow banking system consists mainly of hedge funds, structured investment vehicles and the securitisation markets.
Such intermediaries, which include hedge funds, money market funds and structured investment vehicles, provide credit to the financial sector, but, unlike banks, have no access to central bank support or safeguards such as deposit insurance and debt guarantees.
Shadow banking is a catch-all term for an industry that encompasses hedge funds, private equity firms and structured investment vehicles, which blossomed outside the conventional bank sector during the past decade.
Speaking in a keynote address at the opening of the 17th Annual World Islamic Banking Conference (WIBC) at the Gulf Hotel, he said that while Sharia-compliant institutions, by their very nature, did not get involved in structured investment vehicles and other instruments that turned into toxic assets, the industry did follow conventional banking in becoming overleveraged.
Tett deftly paints the picture of a perfect financial storm: Greenspan had slashed rates to almost nothing following the implosion of the tech bubble and was a staunch devotee of both free markets and derivatives; Americans were practically being gifted houses regardless of their credit worthiness; investment banks were doing a roaring business splicing up mortgages and selling them; ratings agencies such as Standard & amp; Poor's were stamping CDOs with AAA ratings and collecting fat fees; meanwhile, the massive pile of mortgages that were yet to be sold were funnelled into Structured Investment Vehicles (SIVs) by banks anxious to keep debt off their books.
Calpers filed a suit against Moody's Investors Service, Standard & Poor's and Fitch, accusing them of misrepresenting a complex form of debt called structured investment vehicles, which can contain a variety of assets.
At BMI, we do not have any exposure to collateralised debt obligations (CDOs), structured investment vehicles (SIVs) or other complex products.
Standish, part of BNY Mellon Asset Management, is seeing increased interest in Standish Workout Solutions, a global corporate and structured finance advisory business launched in June that provides guidance to institutional investors in assessing the risk and value of mortgage and asset-backed securities, collateralized debt obligations (CDOs), structured investment vehicles (SIVs) and other structured and corporate finance investments.
It said yesterday the figure for the first four months stood at pounds 192m, relating to write-downs on structured investment vehicles and collateralised debt obligations.
We have not invested in structured investment vehicles, collateralised debt obligations or any of the other investments that have given rise to substantial losses at other institutions.

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