Dresdner Bank on Thursday provided the latest evidence that a meaningful recovery in commercial paper remains a distant prospect when it provided a potential $19bn rescue facility for K2, its structured investment vehicle, More…

Another SIV bites the dust. Dresdner on Thursday became the latest bank to step in to prevent a firesale of assets by ponying up a liquidity line to its $18.8bn K2 structured investment vehicle.

The bank has succeeded in reducing the SIV’s size from $31.2bn last July – and Dresdner’s offer aims to allow an orderly sale of the SIV’s assets to “ensure the repayment of all senior debt of K2.” More…