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’The tale of the Shadow Banks
Here’s a scary story to recount at finance campfires.
It’s the Federal Reserve Bank of New York’s monograph on the rapid growth — and collapse — of the shadow banking system. It’s also 81-pages of acronyms (think CDOs,
Sigma-tised – death of a SIV
The saga of Sigma Finance — God’s gift to structured finance writers, with its shadow banking connotations, Gordian Knot connection and ‘event’ associations — is lurching to its end.
On Monday, liquidators of the erstwhile $27bn SIV issued their final statement.
Eternal sunshine of the securitisation mind
It’s conference time!
The 2010 Global ABS meet is currently taking place at the Hilton Metropole, just across from the Marks & Spencer on Edgware Road in London. This is rather a fall from grace,
The Chinese SIV
SIVs? Subprime?
Meet China’s Local Government Investment/Financing Vehicles (LGIVs/LGFVs).
Independent Strategy came up with one of the most headline-worthy characterisations of the vehicles, dubbing them China’s own brand of SIV-like structures.
SPE oops
Buried in the BIS Joint Forum’s 115-page epic on Special Purpose Vehicles are some interesting factoids on just who did not understand the complex financial structures they were investing in. It turns out,
Revenge of the SIV
Bloomberg reports on a market-easing operation put in place today by the Fed:
The Federal Reserve invoked emergency authority to purchase assets from money-market mutual funds that are having difficulty meeting redemptions from their investors.
Little comfort in SIV Portfolio asset auction
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.
SIVs don’t rollover, they die
A quick update on the troubled SIV sector.
The average NAV (net asset value – a ratio of asset-worth to notes after leverage) for SIVs is now hovering just above the 50 per cent mark. According to Moody’s:
Whoops… Moody’s sugar-coated SIVs
Periodically, people send out unredacted copies of press releases. Moody’s sent us this one on SIVs Tuesday evening. The comments they intended to delete are in bold.
Indeed, all (The entire SIV business model is) SIVs are affected by the recent price decline of fixed income assets and all SIV managers have been actively adapting the structure of their vehicles to this stressed environment,
SIVs repo what they sow
As SIVs face judgement week in rolling over their short term debt, most will be presented with a stark choice: draw down on bank credit lines or sell assets.
The first of those two options varies in its usefulness from SIV to SIV.
SIVs in the Citi
So what’s the deal with Citigroup’s SIVs?
On Thursday afternoon, GMT, Citi released its latest figures for the seven SIVs it operates. Together, those seven SIVs corner 25 per cent of the SIV world – with just over $100bn in assets under management.
SIVs, beware the major capital loss test
It’s doubtful that managers of structured investment vehicles will be too happy with Moody’s latest report. Realising it is time to play hardball, the rating agency is pulling no punches in its assessment of the SIV/ABCP market.