SIVs green-lighted for credit protection

Rating agencies are considering opening the doors for structured investment vehicles(SIVs) to sell credit protection. The move could well have positive implications for the credit derivatives market – by adding a new counterparty and improving liquidity.

“We have looked at proposals to do this,” says Richard Hewitt, a senior analyst at Moody’s, “and, subject to certain safeguards, we would consider doing it on a case-by-case basis.”

Hewitt adds that this would only be agreed if the SIV manager

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