...The recent turmoil in credit markets has resulted in diminishing liquidity and the re\##pricing of structured finance risk, with the market value of most structured finance assets declining, triggered b y the problems associated wi th the US subprime residential mortgage\##backed securities (RMBS) market. Structured investment vehicles (SIVs) have suffered acute stress from the turmoil. As of July ####, Fitch estimates that SIVs had USD###bn of total outstanding, although this figure has come down in recent months due to continuing market turmoil. SIVs, traditionally reliant on short\##term funding through the issuance of commercial paper (CP), have been forced to refinance a significant part of their debt through the issuance of new CP or the liquidation of assets at lower prices at a time of extreme market turmoil. Banks are key intermediaries in this market, as sponsors, investors, and liquidity providers for these vehicles. Not surprisingly...
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