HSBC Will Take on $45 Billion of Assets From Two SIVs

Published: November 26, 2007, 2:32 pm

Tags: goldman sachs, mortgage news, structured investment pool siv, hsbc, sivs, supersiv, london, cullinan, asscher

HSBC Will Take on $45 Billion of Assets From Two SIVs HSBC Holdings, Europe’s largest bank, will bail out its two structured investment vehicles, taking on $45 billion of assets to avoid a fire sale of bonds. Investors in Cullinan Finance Ltd. and Asscher Finance Ltd. will be allowed to exchange their SIVs for debt issued by a new company backed by loans from HSBC, the London-based bank said in a statement today. HSBC said it doesn’t expect any “material impact” on its earnings or capital strength. HSBC’s rescue shows the world’s second largest bank manager of SIVs, companies that borrow short term to invest in higher yielding securities, isn’t prepared to wait for the $80 billion “SuperSIV” to start buying assets. Bank of America, Citigroup and JPMorgan Chase & Company have been working for more than two months to set up the fund initiated by U.S. Treasury Secretary Henry Paulson. The SuperSIV is “is all good and well,

[ Full article ]

Blog link

Comments