There's a new nemesis showing up on Wall Street and in The City: SIV-lite. Where are the power puff girls when you need them to take down the ongoing parade of invaders?
Bill Cara had a very good definition:
"SIV-lite, in case you have not heard is a collateralized debt obligation (CDO) with a defined life. This time, as these securities come due, there will be no banker ready to roll them over. Hmmm. The issue really is capital risk (due to insolvency), more than market risk, especially for traders who fail to avoid the Financials."
Here are a few pieces of unfinished business on the SIV front:
Barclays' ABN bid hopes sink as subprime issues rise
Cheyne Capital asks for stay of execution on $7bn SIV