The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Structured finance: Buyers rediscover their appetite for ABS

The latest SIV auction has proved a welcome fillip for the structured finance market.

Given the pounding they have received for nearly two years now, structured finance investors could be forgiven for seeing their glass as half empty rather than half full. At many points it seemed as if there was no floor low enough for these securities – and just when it appeared that valuations could not fall any further – they did. In late May, however, they could have been forgiven for thinking that they had just woken up from a bad dream: a portfolio of ABS and CDO securities was put up for sale and not only were investors falling over themselves to buy but many did not get their orders filled and came away disappointed.

No, this was not a parallel universe, it was the auction of a portion of the failed Whistlejacket structured investment vehicle. The $7 billion fund defaulted in February 2008 when it was cut loose by sponsor Standard Chartered. In late April, receiver Deloitte auctioned off just over 54% of the remaining securities in a $2.5 billion sale. The last time that a SIV portfolio was auctioned off in this way – the sale of 20% of the assets of another defaulted vehicle, Cheyne Finance – the process was a depressing fire sale, with just 11 bids for $1.7

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree