Monday, November 26, 2007

HSBC to provide $35 billion in funding to SIVs

From MarketWatch:

HSBC Holdings on Monday said it would move two of its structured investment vehicles onto its balance sheet and provide up to $35 billion in funding, saying it doesn't expect a near-term resolution of the funding problems faced by the vehicles that it and other banks hold.
In a structured investment vehicle, short-term commercial paper is issued, with the bank then re-investing the proceeds in higher-yielding, and longer-maturity debt. Because of the spillover from the U.S. subprime mortgage lending crisis, investors have been reluctant to buy the commercial paper that these vehicles depend on....MORE

And at MW's sister pub.
From the Wall Street Journal (stub):
Citi's $41 Billion Issue: Should It Put CDOs On the Balance Sheet?