Such entities typically issue short-term I.O.U.'s to investors, and then use the proceeds to make loans to banks.
Banks typically use these off-balance sheet vehicles on behalf of clients to issue short-term notes.
SIVs issue short-term debt that use the money to invest in longer-term securities with higher yields.
In the meantime the most likely outcome is that a caretaker government will seek to issue short-term bonds pending elections.
The stronger banks can still issue short-term notes.Squeezed, not crunchedBoth the government and blue-chip companies are finding credit more expensive.
Meanwhile, several structured investment vehicles, which issue short-term notes to invest in longer-term securities with higher yields, were struggling to refinance.
The Super-SIV would issue short-term notes to finance the purchase of assets held by the SIVs affiliated with the banks, with the hope of reassuring investors.
Guardian Australia has been nominated in five categories including international journalism, multimedia storytelling, major news event or issue, short feature writing and commentary.
This is the market where businesses issue short-term debt, IOUs to finance their near-term operations.
In other words, it's cheaper to issue short-term, medium-term and long-term bonds than to repatriate overseas profit.
Even the deposit-taking feature of commercial banks was mimicked by the ability of investment banks to issue short-term paper, albeit without insurance guarantees.
