SIV Cheyne's assets sold in 'fire sale'
Receivers begin sale of collapsed SIV's assets
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
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.