Financial Times FT.com

SIVs set for $43bn asset ‘firesales’

By Stacy-Marie Ishmael in London

Published: August 29 2007 19:29 | Last updated: August 29 2007 19:29

A liquidity crisis in the commercial paper debt market could force ‘firesales’ of as much as $43bn in assets, according to an analysis by the Royal Bank of Scotland.

A swathe of off-balance sheet vehicles run by banks and asset managers that buy bonds backed by mortgages and other debt are facing forced sales of assets to fund their short-term liquidity requirements.

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