Structured investment vehicle
A fund that borrows for the short-term by issuing commercial paper to invest in long-term assets like MBS and asset-backed securities. The profit is made on the credit spread between short-term debt and long-term investments. Structured Investment Vehicles are often used as off-balance sheet investments by financial firms. SIVs played an important role in the credit crunch of 2007-2008.
Nearby TermsStructured debt Structured finance Structured investment vehicle Structured note Structured portfolio strategy
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University