среда, 14 ноября 2007 г.

as How London Created a Snarl In Global Markets


The two bankers hatched the idea of setting up a fund that would issue short-term commercial paper and medium-term notes to investors, then use the money to buy higher-yielding assets, typically longer-term ones. The bank would profit by collecting fees for operating the fund. The fund's assets would belong to its investors, so they would stay off the bank's balance sheet. SIVs had an advantage over conduits, a similar structure that was already gaining popularity: They didn't require banks to cover fully the fund's debts if the commercial-paper market dried up.
Source link: http://online.wsj.com/article/SB119266856453862839.html?mod=googlenews_wsj




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