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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a wholly owned portfolio company of Ares Capital Corporation, is an SEC-registered investment adviser, comprised of an experienced team of investment professionals focused on investing in and managing primarily middle market senior secured assets through structured investment vehicles and managed accounts.
A Shadow banking system is a network of financial institutions comprising non-depository banks like the structured investment vehicles, hedge funds, investment banks, and money market funds.
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.
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.
DFS Superintendent Ben Lawsky even invoked AIG and analogized the use of captives to the same risky practices that precipitated the 2008 financial crisis, issuing subprime mortgage-backed securities (MBS) through structured investment vehicles and writing credit default swaps on higher-risk MBS.
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.
August 30, 2011) -- The California Public Employees' Retirement System (CalPERS), the largest public pension in the US, has settled a lawsuit with Fitch Ratings over claims that it, along with Moody's Investors Service and Standard & Poor's, assigned unreasonably high ratings on structured investment vehicles (SIVs).
Shadow banks such as structured investment vehicles, hedge funds and money market mutual funds, could be used, according to regulators, to evade attempts aimed at preventing excessive risk taking.
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 form of debt called structured investment vehicles, which can contain a variety of assets.

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