The first sale of the assets of SIV Cheyne Finance was described as a 'fire sale' by Moody's Investors Service.
Receivers from Deloitte & Touche are reorganising the $6bn SIV's assets, deciding whether to sell through auctions or transfer them into a new company.
'Moody's has taken into account the expectation that prices achieved at auction may be significantly lower than prices that may be expected through an orderly and selective liquidation,' analysts led by Paul Kerlogue and Henry Tabe wrote in the report, according to Bloomberg.
Cheyne used short-dated commercial paper markets to buy longer-dated assets, which were thought to be safe investments but collapsed after problems in the sub-prime mortgage market.

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