Financial Times FT.com

Vehicles and their ‘lite’ models run into trouble as ratings turn downwards

By Stacy-Marie Ishmael

Published: August 29 2007 21:18 | Last updated: August 29 2007 21:18

Structured investment vehicles and their SIV-lite cousins, which look to profit from the differences between cheap short-term debt funding and higher longer-term investment returns, manage about $400bn in assets, according to data from Moody’s, the ratings agency.

Turmoil in the asset-backed commercial paper market has led to funding difficulties, while their asset values have declined as investors have fled all kinds of structured products.

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