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-{{a|fwmd|{{subtable|{{fwmd|SIV}}}}}}A structured investment vehicle (SIV) is a pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset-backed securities (ABS).
+{{a|fwmd|{{subtable|{{fwmd|SIV}}}}}}{{d|Structured investment vehicle|/ˈstrʌkʧəd ɪnˈvɛstmənt ˈviːɪkl|/n|}}A clever way of financing long-term assets with extremely short term liabilities. “Clever” in the same way that running head-first at a brick wall is a clever way of getting out of having to do P.E.
-A SIV, administered by a commercial bank or another asset manager such as a hedge fund, will issue asset-backed commercial paper (ABCP) to fund the purchase of these securities.
+A structured investment vehicle (“[[SIV]]”, also called a “[[conduit]]” or “[[CP conduit]]”) is an [[espievie]] that issues [[commercial paper]] and uses the proceeds to buy long-dated investment assets.
-Structured investment vehicles are sometimes known as conduits.
+The idea is thus to profit from credit spreads between short-term debt and long-term structured products like [[CDO]]s and [[Asset-backed security|asset-backed securities]].
+That is, it has to pay interest predicated on short-term nature of commercial paper, where the holder has credit risk only for a couple of months, and therefore credit spreads are tighter (it being less likely that a borrower will go bust in period measured in months than over ten years), but it invests in long-term assets — like 25-year mortgages — where the lender is locked in for very long periods, and the borrower therefore pays wider credit spreads, and more interest.
+This all only works, of course, as long as people remain prepared to buy your commercial paper when it rolls every month. In times of plenty, when markets are steady, they generally will, because a SIV will generally pay better interest than normal commercial paper issuers, because of the assets it invests in — but when, as it periodically does, the market blows up, no-one will want to buy your crappy CP when it rolls, backed as it is by second mortgages of fourth homes of Las Vegas strippers, and you will find yourself lacerated by shards of hot twisted metal in the pit of a very deep, very smoking, crater. This happened in 2008. The problem is called “duration mismatch”. It is one the crypto-world is re-discovering all by itself in 2022.
+===Role in [[Opco Boone]] adventures===
+An [[SIV]] is a utility transport vehicle that moves forward by acquiring momentum through a rapid [[subscription]]/[[redemption]] cycle. It effectively sucks liquidity out using the gravitational attraction of yield. It uses this almost guaranteed inflow to power its tactical asset allocation engines and manufactures its own tracks. Engineers managed to iron out the juddering/clattering sensation in its ordinary forward movement by shortening the tenor and increasing the yield on asset portfolios, but the vehicle still has a weakness in certain volatile climates especially situations where combatants can draw liquidity away from the vehicle.
 {{sa}}
+*[[FTX]]