Subprime contagion

The turmoil in the US subprime mortgage market has hit conduits, structured investment vehicles (SIVs) and SIV-lites in Europe, with investors refusing to roll over short-term commercial paper financing. It's caused an unwinding of portfolios and, in some cases, required emergency funding. Radi Khasawneh reports on the market fallout


The rout in the US subprime mortgage market has claimed a number of high-profile victims in recent months, with hedge funds such as Bear Stearns Asset Management and Sydney-based Basis Capital reporting bulky losses attributed to subprime exposures. Over the past month, however, attention has focused squarely on conduits and structured investment vehicles (SIVs) - and the crisis has hit them hard. Concerned about potential losses in these particular portfolios, investors have refused to roll

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