Structured investment vehicle
Financial Weapons of Mass Destruction™
A guide to the tools of our trade.
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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 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.
Structured investment vehicles are sometimes known as conduits.