SATFIN- THE FINANCIAL SATIRE WEBSITE

Definitions
Home
Bailout Special
Derivatives
Write Down Retrospective
Subprime News
Finance Explained
Trade Ideas
Blogs
Definitions
Links and Contact details

Enter subhead content here

A capital note holder of a SIV usually takes the first loss on any securities held by the SIV. So if you held a capital note on a $1billion SIV, you would take the first losses to be realised from sale of assets.
 

SIV standard for structured investment vehicles. These are companies usually set up (but not owned) by banks. The purpose of the companies varies but usually involves investing in securities. Certain types of SIVs for example buy long dated securities and fund these by issuing short term debt. There are many reasons for a bank to use these structures ranging from lower regulatory capital to lower balance sheet usage.

 

Enter supporting content here

Regulators, they're better than nothing...well almost