1 How a SIV Works Investors invest in the SIV in exchange for interest payments.

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Presentation transcript:

1 How a SIV Works Investors invest in the SIV in exchange for interest payments

2 How a SIV Works The SIV takes the investment money and purchases asset-backed securities that pay interest greater than what is owed to its investors

3 How a SIV Works The SIV takes the investment money and purchases asset-backed securities that pay interest greater than what is owed to its investors

4 How a SIV Works The SIV makes money on the interest and principal payments of the asset-backed securities in its portfolio

5 How a SIV Works Interest and principal from the assets in the portfolio are used to pay investors