What is the role of structured investment vehicles (SIVs) on Wall Street?

Structured Investment Vehicles (SIVs) are a type of investment fund that is created to invest in a wide range of financial assets. SIVs are typically funded through the issuance of commercial paper, which is a type of short-term debt instrument that is issued by corporations and financial institutions. SIVs invest in a variety of assets, including mortgage-backed securities, asset-backed securities, and other types of fixed-income securities.

The role of SIVs on Wall Street is to provide a source of funding for banks and other financial institutions. By issuing commercial paper, SIVs provide a way for these institutions to raise funds quickly and easily. The funds raised by SIVs are then invested in a variety of financial assets, which can help to generate income and diversify the portfolios of the banks and other institutions that invest in them.