Dec. 18 (Bloomberg) -- The SuperSIV' fund, set up to provide cash to structured investment vehicles hurt by the collapse of the subprime-mortgage market, plans to start buying assets within weeks,' its sponsors said today.
The fund's size, originally envisioned at about $80 billion, will be based on SIVs' needs and evolving market circumstances, Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement. The banks are raising money for the fund while BlackRock will manage its assets.
The urgency that led to the SuperSIV's creation eased after separate SIV bailouts by banks including Citigroup and London- based HSBC Holdings Plc. New York-based Citigroup said last week it would take over seven SIVs with $58 billion of debt. Banks want to avoid forced assets sales to repay SIV borrowings because that would further roil credit markets and reduce the value of their own debt holdings.
The fund, also known as the Master Liquidity Enhancement Conduit, or M-LEC, can still provide ``an optional source of liquidity for eligible high-quality assets,'' the banks said in the statement.
SIVs, which sell short-term debt and invest the proceeds in higher-yielding securities, have cut their holdings by more than 25 percent since August to $298 billion, according to Moody's Investors Service in New York. That's when investors started shunning SIV commercial paper and medium-term notes amid increasing losses on subprime mortgages.
Question: Will this SuperSIV fund help to stabilise the markets?
- ► 2019 (1682)
- ► 2018 (1406)
- ► 2017 (1258)
- ► 2016 (828)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1269)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1654)
- ► 2008 (2104)
12/16 - 12/23
- Different Types of Investment Funds
- A marketing tool
- Agent to source for quotes
- Invest for the long term
- Family Insurance
- Invest in Bonds
- Happy Holidays
- Top up your relatives CPF accounts
- How to make your CPF money work HARDER
- A new way to publish a book
- Reverse Mortgage
- Book on Logic Quiz
- Swan Lake at the Esplanade
- Investing in each other's products
- Term with critical illness cover
- Big writeoffs for sub-prime losses
- Horrified by shark attacks?
- Insurance agents who look after your interest
- Charges of an Investment Linked Plan (ILP)
- Innovative, animated, e-greeting card
- Living policy actively promoted in the past
- ILP and Unit Trust
- Promoting Swan Lake
- Visitors to my blog
- Buy Term Insurance Directly
- Pay less for your motor insurance
- Swan Lake - tell your friends
- Critical Illness Policy for $250,000
- Sudoku Workshop at Bishan
- SuperSIV Bailout Fund
- Flexi Link and CPF policies
- Logic Quiz A-8
- Taxi service in Singapore
- Light buses in Hong Kong
- CEO uses public transport
- How much to insure for critical illness?
- Money Market Fund
- Invest the year-end bonus
- Swan Lake - the story
- Investing in volatile market conditions
- Swan Lake, 20 - 23 December, Esplanade
- Renewal of motor insurance
- Forward Pricing of Unit Trust
- Buy Motor Insurance Directly
- Buy Term Insurance Directly
- Investment-linked plan with high distribution cost...
- NTUC Income's Money Market Fund
- Government Bonds
- Search my blog
- Logic Quiz A-7
- Logic Quizzes at my website
- Answers to 6J16, 6A19
- Good chance to win the Sudoku Challenge
- Bid and Offer prices of Unit Trust
- Sudoku Challenge 6 and 13 January 2008
- Sudoku (Logic9) workshop
- How long does it take to solve a Logic Quiz?
- Lower the cost of insurance
- Types of Liability
- Corporate governance and risk management
- Answer to J17, A17
- Use credit card to buy shares?
- Logic Quiz 6A-19
- Logic Quiz 6J-17
- ▼ 12/16 - 12/23 (65)
- ► 2006 (696)
- ► 2005 (159)