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.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Two-tier bid

Takeover bid in which the acquirer offers to pay more for the shares needed to gain control than for the remaining shares, or to pay the same price but at different times in the merger period;... Read More

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