A benchmark auction of distressed debt assets has given investors a gloomy guide to the prospects of recovering cash from the troubled structured investment vehicles that have been at the heart of the credit crunch.

The assets auctioned from a $7bn (£3.5bn) SIV formerly known as Cheyne Finance this week drew bids that would pay only 44 cents in the dollar if investors opted for a cash exit from the vehicle, it was revealed on Thursday.