Bailout time for SIVs

The structured investment vehicle (SIV) business model of issuing short-term commercial paper and investing in longer-dated higher-yielding debt has been hit particularly hard by the US subprime crisis. Pressure on the SIV sector intensified at the end of last year after funds saw net asset values drop to new lows, a rise in realised losses from asset sales and negative action from the rating agencies.

A bearish mood in the structured finance market has meant that investors are reluctant to inves

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