HELP FOR SIV'S

Structured Investment Vehicles have been hammered by the sub-prime crash.

From Bloomberg:

SIVs emerged in August as one of the biggest threats to capital markets that were rocked by record-high defaults on subprime mortgages. Citigroup invented SIVs in 1988 and was the biggest manager of the funds.

The average net asset values of SIVs tumbled to 55 percent from 71 percent a month ago and 102 percent in June, according to Moody's. The net asset value is the amount that would be left for investors if a fund had to sell holdings and repay debt.

To prevent SIV's from being forced to sell their best assets at fire sale prices, some big banks have decided to carry them on their books.

From MarketWatch:

HSBC Holdings PLC said recently that it's moving Cullinan Finance and Asscher Finance, two SIVs, onto its balance sheet to prevent forced sales of what it called "high-quality assets." Britain's largest bank by market value is providing up to $35 billion in funding, and its balance sheet will expand by $45 billion.

Citigroup said last week that it was taking $49 billion worth of assets from SIVs it advises onto its balance sheet to resolve "uncertainties" swirling around the vehicles.