Mortgage news

News, trends and analysis of the mortgage and credit market

Sunday, December 2, 2007

Citi cuts assets of sponsored SIVs by $17 billion




November 30 2007 MarketWatch.com
Citigroup Inc. said late Friday that it has reduced the assets of structured investment vehicles it advises by $17 billion in the past two months, as the banking giant tries to maneuver through this year's subprime thicket. Structured investment vehicles borrow short-term money by selling commercial paper and buying longer-term, fixed-income investments. The longer-term assets usually pay higher interest rates than the short-term debt, so they make money on the difference. Some of those higher-yielding assets were mortgage-backed securities and so-called collateralized debt obligations partly backed by subprime home loans. As the subprime crisis spread, SIVs struggled to refinance themselves because spooked money-market funds and other investors refused to buy more commercial paper from them.
 Read 
 more 

Best Mortgage Companies

Email this article to a friend | Send us a comment

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home